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Submitted By vicckypatel1
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1. What are the benefits of trading in Index Futures compared to any other security?
2. Distinguish between the open interest and trading volume. Explain the various types of orders used in Indian Derivatives Exchanges.
3. Explain what is meant by a perfect hedge. Does a perfect hedge always lead to a better outcome then an imperfect hedge? Explain your answer.
4. What do you understand by commodity futures? What are the benefits of commodity futures at national level?
5. Compare between forward, future and option.
6. Explain the regulatory framework of futures trading in India.
7. Explain carefully differences between hedging, speculation and arbitrage in the context of financial derivatives.
8. Explain the term ‘Financial derivative’. What are the important features .Explain with suitable examples. Which are different types of instruments ?
9. What do you mean by SWAPs? Explain the different type of Swaps in detail that are used to hedge different risks.
10. Explain what do you mean by long hedges and short hedges with example.
11. Discuss in detail what do you understand by hedge ratio and hedging effectiveness.
12. “Derivative contracts are used as a tool of hedging in financial market” . Explain the different types of risk that occur in a financial market.
13. Clearing house is the ‘de facto’ guarantor for all the transactions in futures. Describe briefly the functions of a clearing house.
14. What is currency Swap? Classify the different types of currency rate Swaps . How a person can do “Arbitrage” using currency future?
15. OTC derivatives v/s. Exchange traded derivatives
16. What are T-bill futures? Classify the hedging strategies with T-bill futures.
17. What is “Plain Vanilla” swap? Classify the different types of Interest rate Swaps
18. Explain what is meant by a perfect hedge. Does a perfect hedge always lead to

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