A Study of Single Stock Future in India and its Current Status Comparing With other Financial Derivatives with Special Reference to Options.
Journal Title: International Journal of engineering Research and Applications - Year 2017, Vol 7, Issue 12
Abstract
Warren Buffett says, “Derivatives are financial weapons of mass destruction”. Since inception of derivatives in Indian financial market in 2001, there is exponential growth in volume and number of contracts in derivative instruments. This may be due to many factors like financial sector reforms, impact of technology, liberalization policy of the government, trends of globalization; taxation etc. Derivative market provides opportunity for investors to hedge their risk exposure and makes profit; this motivates and attracts many individuals to invest their pooled savings in stock markets which contributes socioeconomic and financial growth of the country. Forwards, futures, options and swaps are derivative market instruments. Among all, single stock futures (SSF) seeks great attention to study in depth because of volume, turnover and number of contracts are more compared to other derivative instruments. In the present scenario, there is a need for in depth study of SSF and its Current status comparing with other Financial Derivatives. This article attempts to discuss history, development, concept, hedging strategy of SSF and its current status comparing with other Financial Derivatives with special reference with options. This article will be scope for further in-depth study on SSF, because of volume; turnover and number of contracts are more compared to other derivative instruments like options, index future, and index option. The relationship between the settlement prices, trading volume, open interest and volatility etc, modeling and forecasting volatility for stock futures contract still remains the muddy water in the context of changing scenario.
Authors and Affiliations
Mr. Suman Kumar Y V, Dr. Shivappa
Keywords
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- EP ID EP393311
- DOI 10.9790/9622-0712079197.
- Views 133
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