0
Stock Options and Futures
Options are the right to buy or sell a security at a set price over a specified period of time. Futures are contracts to buy or sell assets at a set price on a predetermined future date.
827 Questions
What are put and call in stock market?
Puts and calls can be either futures (which require the contract's buyer to complete the transaction at a certain price on a certain date) or options (which allow, but don't require, the buyer to complete the transaction on the certain date for the certain price).
A put buyer either can or will sell to the put seller the stock named in the contract.
A call buyer either can or will buy from the call seller the stock.
Does insider trading hurt the company as a hole?
Yes, because the people who are doing it get thrown in jail and can't work there anymore. Insider trading really hurts the overall economy.
- - - - -
Insider trading more hurts the people OUTSIDE the company than it does inside.
I'll give a fairly simple example: Let us say Alpha Drug Company decides to launch a hostile tender offer for Bravo Drug Company. Bravo Drug is currently trading at $20 per share. The day before they announce the offer, Alpha's board of directors each buy $1 million worth of Bravo stock. The day after the offer is announced, Bravo's stock goes to $40, and the Alpha directors dump it. They have enriched themselves at the expense of the people who bought the stock from them. Alpha and Bravo, OTOH, haven't been affected one bit.
What is the minimum time span to trade a future contract?
It depends on what you mean by trading the futures contract.
If you're a speculator who bought the thing in hopes of selling it for a profit before the settlement date (this happens all the time, and my opinion is it's stupid to do so--you're more likely to lose money speculating on futures than you are in making it) the minimum time is the time it takes for the price of the underlying commodity to go up enough that you'll make money on the deal.
If you use the underlying commodity...well, let's just say you could buy a futures contract from one of the idiots in the last paragraph the day before the settlement date.
Its a very long list and could be seen on couples of websites.
Major companies in BSE sensex?
BSE Sensex is the weighted average of the price movement of the 30 largest company's that are listed in the Bombay Stock Exchange. This list of company's may change from time to time and the Exchange will always release the news of replacement of any company in the Sensex to the public beforehand.
Some of the major companys in this index are:
- State Bank of India
- ICICI Bank
- HDFC Bank
- Reliance Industries
- TATA Motors
- etc
The full list of the 30 company's that are part of the Sensex Index can be found in the Related Links section
An American put option can be exercised at any time during its life. The European put option can only be exercised at the end of the contract period.
What is the meaning of IV or OIV in relation to Futures and Options market?
oiv means in stock market
What is the difference between a forward contract and a cash transaction?
In a forward contract, you are setting the price now for something you'll buy later. A cash transaction involves setting the price for something you're buying today.
Give the brief note on the Organisational structure of nse and bse?
The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to encouragestock exchange reform through system modernization and competition. It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies.
The number of members trading on the exchange has been on a steady increase, helping integrate the national market and providing a modern system with a complete audit trail of all transactions.
Membership
- 1026 trading members on the Capital Market segment, of which around 86% account for corporates and the remaining individuals and firms.
- 113 trading members on the Wholesale Debt Market segment, all of which account for corporates. (Out of these 113 trading members, 106 are members of the Capital Market segment also and are included in the 1026 members indicated above).
Geographic Distribution
- Over 2600 trading terminals
- Over 1500 VSAT's across the country with a 24 hour Network monitoring system in over 160 cities as of December 31st, 1997.
Number of Companies
- On the Capital Market segment, 600 securities are listed and 762 securities are permitted to trade as of December 31st, 1997.
- On the Wholesale Debt Market segment, 470 securities are listed and 369 securities are permitted to trade as of December 31st, 1997. Of the 470 securities listed, 267 are Government Securities, T-Bills and the balance account for other securities.
Capital Market Operations
- NSE is working to increase the capacity of the trading system from the present 4,00,000 trades per day to more than 10,00,000 trades per day.
- The average daily numbers of trades have gone up from over 893 trades in November-94 to over 1,48,783 trades in November 97. On August 7, '97 the number of trades reached a record high of 2,36,411 which makes NSE one of the largest stock exchanges in the world.
- Average daily traded value has increased from Rs.7 crores in November-94 to more than Rs. 1480 crores in December-97 with a high of Rs.3,080.61 crores recorded on 26th June-97.
- Number of shares traded has increased from 76.10 lakhs in November-94 to 11,148.21 lakhs in December-97.
- Net traded value has increased from Rs.125 crores in November -94 to Rs. 32,549 crores in December-97.
- Delivered value (settlement wise) has increased from Rs.60 crores in November -94 to Rs.5,008 crores in December -97.
- Number of shares traded (depository segment) has increased from 200 shares in December -96 to 1,19,102 shares in December-97.
- Net traded value (depository segment) has increased from Rs.0.43 lakhs in December -96 to Rs.185.44 lakhs in December-97.
- Market share of cities other than five metros (Mumbai, Delhi, Calcutta, Chennai & Ahmedabad) which was about 16% in first quarter of 1996 grew to as high as 24% during the last quarter of 1997.
- The ratio of contribution to turnover from Non Stock Exchange centres to Stock Exchange centres has risen from 0.36% in first quarter (Jan to Mar) of 1996 to over 10% in fourth quarter of 1997.
- The market capitalisation of companies has increased from Rs. 292637 crores in November'94 to Rs. 4571663 crores in February'98.
Clearing & Settlement
- Completed 170 settlements successfully without any delay or postponement as on February 28, 1998.
- Value of shares handled by the Clearing house per week has increased from Rs. 30 crores in November-94 to over Rs.1042 crores per week in December-97. The highest value of shares handled during the period was more than Rs. 2251.40 crores.
- Inter-Region Clearing : NSCCL has Regional Clearing Centres at Delhi, Calcutta, Chennai and a Central Clearing Centre at Mumbai. Members have the option of delivering/receiving the securities at a clearing centre chosen by them.
Wholesale Debt Market Operations
- The WDM segment commenced operations on June 30, 1994 with 224 securities carrying an outstanding debt value of Rs. 1,35,000 crores (US$ 34 billion). This has now increased to 839 securities with a market capitalisation of Rs. 3,50,565 crores (US$ 88 billion). More than half of the securities available for trading are listed and the balance are permitted to trade.
- Currently, the Exchange has 78 registered participants on the WDM segment which includes 24 Public sector banks, 18 Foreign banks, 15 Private sector banks, 6 Primary dealers, 5 Financial institutions, the others being corporate bodies, mutual funds and foreign debt fund.
- Average daily value in the WDM segment increased from Rs. 2.4 crores in June-94 to Rs. 298.17 crores in December -97 with a high of Rs. 1831.27 crores recorded on 12-Aug-97.
- Net traded value in the WDM segment increased from Rs. 1096.25 crores in July -94 to Rs. 7,752.52 crores in December-97 with a high of Rs. 15,545.40 crores recorded in July '97.
- There has been a consistent increase in NSE's share of the total volume of activity in the market (gilt securities) over the period. Government securities along with Treasury bills together account for over 80% of the total market activity.
- The share of the Exchange of the total market activity in Government Securities and T-Bills has increased from a mere 22% in 1996 to 53% in 1997.
An increase in mortgage interest rates. APEX!
my peeps
Options are valued using a theoretical model known as the "Black Scholes Model". The black scholes model prices options based on what are known as "Greeks", which are mathematical parameters of variables that influences the price of an option.
However, this is a theoretical model because it cannot take into consideration the actual supply and demand of an option in the market and such forces does take the price of an option away from their theoretical value.
Which is the highest stock for today?
I think the only thing high is you. I think Warren Buffet's stock Berkshire shares are the highest priced stocks in the world. But that's because he hasn't split the stocks to make them more affordable since first created.
Yes. This is a free economy and based on the Treaties with the Native Americans they could be set up legally and operate as any other company.
The US Government cannot interfere in the economic activities of private companies established under laws of sovereign nations such as the AXJ NATION.
http://www.facebook.com/group.php?gid=342072107770&ref=ts
Difference between American option and European option?
The only difference between American Options and European Options is that the American Option allows you to exercise the option anytime before and up to expiration while European options only allow you to exercise the option upon expiration. Both options can be freely bought and sold before expiration.
How low the stock price would have to be for the time value of the option to be zero?
It don't relate with price time value would be zero on last Thursday of the current month because it's the last limit till u have to suare up your position in the market otherwise broking house will do it..........
