CHAPTER – VI

DATA ANALYSIS AND

INTERPRETATION

1
 ANALYSIS OF ICICI:

The objective of this analysis is to evaluate the profit/loss position of futures and options.
This analysis is based on sample data taken of ICICI BANK scrip. This analysis considered
the 30-Dec-2018 to 30-Dec-2022 contract of ICICI BANK. The lot size of ICICI BANK is
175, the time period in which this analysis done is from 30-12-2022
Table 1:

Market price Future price

Date

15-Dec-2018 727.7 749.86

20-Dec-2018 722.4 744.40
25-Dec-2018 716.3 738.11
30-Dec-2018 709.55 731.15
15-Dec-2019 734.65 757.02
20-Dec-2019 753.4 776.34
25-Dec-2019 755 777.99
30-Dec-2019 758 781.08
15-Dec-2020 754 776.96
20-Dec-2020 758.65 781.75
25-Dec-2020 752.25 775.15
30-Dec-2020 741.15 763.72
15-Dec-2021 728.3 750.48
20-Dec-2021 709.95 731.57
25-Dec-2021 720.35 742.28
30-Dec-2021 732.8 755.11
15-Dec-2022 731.3 753.57
20-Dec-2022 727.1 749.24
25-Dec-2022 736 758.41
30-Dec-2022 735.8 758.20

2
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

Graph:1

INTERPRETATION:

If a person buys 1 lot i.e. 175 futures of ICICI BANK on 1st Dec, 2022 and sells on 31st
Dec 2022 then he will get a profit of 749.86- 762.69= 12.83per share.

The closing price of ICICI BANK at the end of the contract period is 762.69and this is
considered as settlement price.

The following table explains the market price and premiums of calls.
The first column explains trading date

Second column explains the SPOT market price in cash segment on that date.

The third column explains call premiums amounting at these strike prices; 1200, 1230,

1260, 1290, 1320 and 1350.

3
CALL OPTIONS:

Table 2:

Strike prices

Date Market price 1200 1230 1260 1290 1320 1350

15-Dec-2018 727.7 67.85 53.05 39.65 32.25 24.2 18.5
20-Dec-2018 722.4 74.65 58.45 44.05 32.75 23.85 19.25
25-Dec-2018 716.3 62 56.85 39.2 30 22.9 18.8
30-Dec-2018 709.55 100.9 75.55 63.75 49.1 36.55 27.4
15-Dec-2019 734.65 75 60.1 45.85 34.5 26.4 22.5
20-Dec-2019 753.4 109.6 91.05 68.25 51.35 38.6 29.15
25-Dec-2019 755 170 143.3 120 100 79.4 62.35
30-Dec-2019 758 140 119.35 100 85 59.2 42.85
15-Dec-2020 754 140 101 74.35 62.05 46.65 33.15
20-Dec-2020 758.65 160.6 131 110 95.45 70.85 53.1
25-Dec-2020 752.25 250.7 151.8 188.9 164.7 130.9 104.55
30-Dec-2020 741.15 240 213.5 148 134.9 96 88.2
15-Dec-2021 728.3 155 150.05 112.5 134.9 66 52.65
20-Dec-2021 709.95 128.4 140 90 63 78.2 60.95
25-Dec-2021 720.35 128.4 140 95 67.5 50.2 39.15
30-Dec-2021 732.8 128.4 60 54 37.95 29.15 19.3
15-Dec-2022 731.3 52 36.5 26.3 24.45 14.55 9.95
20-Dec-2022 727.1 44.15 31.05 22.55 12.45 10.35 6.7
25-Dec-2022 736 50.25 39.3 23.25 17 16.35 8.6
30-Dec-2022 735.8 40.4 22 17.05 12.1 9.45 5.1

4
 900

800

700

600
Market price
500 Future price
400 1200
1230
300 1260
1290
200 1320
100

0
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

INTERPRETATION:

CALL OPTION

BUYERS PAY OFF:

Those who have purchase call option at a strike price of 1260, the premium payable is

39.65

On the expiry date the spot market price enclosed at 1147. As it is out of the money for the

buyer and in the money for the seller, hence the buyer is in loss.

So the buyer will lose only premium i.e. 39.65 per share.

So the total loss will be 6938.75 i.e. 39.65*175

SELLERS PAY OFF:

As Seller is entitled only for premium if he is in profit.

So his profit is only premium i.e. 39.65 * 175 = 6938.75

5
PUT OPTIONS:

Table 3:

Strike prices
Market price
Date 1200 1230 1260 1290 1320 1350
15-Dec-2018 727.7 39.05 181.05 178.8 197.15 190.85 191.8
20-Dec-2018 722.4 34.4 181.05 178.8 197.15 190.85 191.8
25-Dec-2018 716.3 32.1 181.05 178.8 197.15 190.85 191.8
30-Dec-2018 709.55 22.6 25.50 178.8 41.55 190.85 191.8
15-Dec-2019 734.65 32 38.00 178.8 82 190.85 191.8
20-Dec-2019 753.4 17.65 25.00 37.05 82 190.85 191.8
25-Dec-2019 755 12.4 12.60 20.15 34.85 43.95 191.8
30-Dec-2019 758 10.15 12.00 20.05 30 42 191.8
15-Dec-2020 754 11.9 15.00 26.5 36 51 191.8
20-Dec-2020 758.65 9 11.00 15 25.2 33.7 47.8
25-Dec-2020 752.25 3.75 11.00 10 8.9 12.75 18.35
30-Dec-2020 741.15 3.75 11.00 8.5 12 12.4 22.45
15-Dec-2021 728.3 6.45 7.00 10 17.45 23.1 38.3
20-Dec-2021 709.95 8 8.00 11.25 13.3 22.55 35.35
25-Dec-2021 720.35 7.3 8.00 17.8 25.45 38.25 56.4
30-Dec-2021 732.8 18.15 36.60 35 67.85 76.05 112.2
15-Dec-2022 731.3 103.5 70.00 69.65 135.05 151.35 223.4
20-Dec-2022 727.1 110 138.90 138.6 170.05 210 280
25-Dec-2022 736 71 138.90 135 150 210 200
30-Dec-2022 735.8 99 138.90 135 150 210 200

6
 900
800
700
600
Market price
500 Future price
400 1200
1230
300 1260
200 1290
1320
100
0
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 2 5 30 1 5 2 0 25 3 0 15 20 2 5 30 15 20 25 3 0 15 20 2 5 30

INTERPRETATION:

PUT OPTION

BUYERS PAY OFF:

As brought 1 lot of ICICI that is 175, those who buy for 1200 paid 39.05 premium per

share.

Settlement price is 1147

Strike price 1200.00

Spot price 1147.00

53.00

Premium (-) 39.05

13.95 x 175= 2441.25

Buyer Profit = Rs. 2441.25

Because it is positive it is in the money contract hence buyer will get more profit, incase
spot price decreases, buyer‘s profit will increase.

SELLERS PAY OFF:

It is in the money for the buyer so it is in out of the money for the seller, hence he is in loss.
7
The loss is equal to the profit of buyer i.e. 2441.25.
 ANALYSIS OF SBI:-

The objective of this analysis is to evaluate the profit/loss position of futures

and options. This analysis is based on sample data taken of SBI scrip. This
analysis considered the Dec 2022 contract of SBI. The lot size of SBI is 132,
the time period in which this analysis done is from 31-12-2022
Table:4
Marke t price Future price
Date

15-Dec-2018 475.3 489.77

20-Dec-2018 477 491.52
25-Dec-2018 473.15 487.55
30-Dec-2018 465.3 479.47
15-Dec-2019 476.7 491.21
20-Dec-2019 491.55 506.51
25-Dec-2019 488.65 503.53
30-Dec-2019 494.7 509.76
15-Dec-2020 487.8 502.65
20-Dec-2020 488.55 503.42
25-Dec-2020 484.8 499.56
30-Dec-2020 481.15 495.80
15-Dec-2021 467.8 482.04
20-Dec-2021 449.2 462.88
25-Dec-2021 446 459.58
30-Dec-2021 455.85 469.73
15-Dec-2022 461.8 475.86
20-Dec-2022 456.95 470.86
25-Dec-2022 458.05 471.99
30-Dec-2022 461.2 475.24

8
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

Graph:3

INTERPRETATION:

If a person buys 1 lot i.e. 350 futures of SBI on 1th Dec, 2022 and sells on 31st Dec, 2022
then he will get a loss of 489.77-474.47= -15.3 per share.

The closing price of SBI at the end of the contract period is 474.47 and this is
considered as settlement price.

The following table explains the market price and premiums of calls.
The first column explains trading date

Second column explains the SPOT market price in cash segment on that date.

The third column explains call premiums amounting at these strike prices; 2340, 2370,

2400, 2430, 2460 and 2490.

9
CALL OPTIONS:

Strike prices
Market Price
Date 23402370 2400 2430 2460 2490
15-Dec-2018 475.3 145 92 104.35 113 79 68
20-Dec-2018 477 145 92 102.95 113 72 59
25-Dec-2018 473.15 134 92 101.95 113 69.85 59
30-Dec-2018 465.3 189.8 92 123.25 105.8 90.25 76.55
15-Dec-2019 476.7 189.8 92 98.45 93.6 76.6 60.05
20-Dec-2019 491.55 189.8 92 100.95 86 74.8 60.05
25-Dec-2019 488.65 189.8 92 95.55 88.15 76.15 61.1
30-Dec-2019 494.7 190 92 128.55 118.3 99.85 84.8
15-Dec-2020 487.8 170 92 126.75 121 92.15 77.45
20-Dec-2020 488.55 170190 84 72.25 58.8 51.85
25-Dec-2020 484.8 160190 113.85 94.95 74.65 64.85
30-Dec-2020 481.15 218.5190 110.8 90.2 81.5 64.8
15-Dec-2021 467.8 218.5190 87.85 75 62.65 55.3
20-Dec-2021 449.2 96 98 102.15 95.45 68.5 61.95
25-Dec-2021 446 96 190 91.85 80 66 55
30-Dec-2021 455.85 96 190 62.1 50.55 44 30
15-Dec-2022 461.8 22.25190 25.3 15 11.7 29
20-Dec-2022 456.95 22.25190 21.05 15 11.7 10
25-Dec-2022 458.05 22.25190 47.05 15 32.65 29.3
30-Dec-2022 461.2 104190 48.2 40 26.45 26.3

Table:5

10
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

INTERPRETATION:

CALL OPTION

BUYERS PAY OFF:

Those who have purchased call option at a strike price of 2400, the premium payable is

104.35

On the expiry date the spot market price enclosed at 2167.65. As it is out of the money for

the buyer and in the money for the seller, hence the buyer is in loss.

So the buyer will lose only premium i.e. 104.35 per share.

So the total loss will be 13774.2 i.e. 104.35*132

SELLERS PAY OFF:

As Seller is entitled only for premium if he is in profit.

So his profit is only premium i.e. 104.35 * 132 = 13774.2

11
PUT OPTIONS:

Strike prices
Market Price
Date 2340 2370 2400 2430 2460 2490
15-Dec-2018 475.3 362.75 306.9 90 303 218.05 221.95
20-Dec-2018 477 362.75 306.9 90.6 303 218.05 221.95
25-Dec-2018 473.15 362.75 306.9 84.95 303 218.05 221.95
30-Dec-2018 465.3 60 40 73.55 303 218.05 221.95
15-Dec-2019 476.7 60 40 86 303 218.05 221.95
20-Dec-2019 491.55 60 40 87.35 303 218.05 221.95
25-Dec-2019 488.65 60 150 79 303 218.05 221.95
30-Dec-2019 494.7 60 150 50.7 303 100 221.95
15-Dec-2020 487.8 60 150 56.8 303 75.3 221.95
20-Dec-2020 488.55 60 150 74.25 303 112.8 100
25-Dec-2020 484.8 60 150 53.15 41 78.3 125
30-Dec-2020 481.15 60 150 44.25 59.95 71.35 100
15-Dec-2021 467.8 40 150 69.6 78 100 128
20-Dec-2021 449.2 75.9 150 65.05 78 135 150
25-Dec-2021 446 75.9 150 70.45 78 96.55 150
30-Dec-2021 455.85 75.9 70 95.05 118 96.55 150
15-Dec-2022 461.8 170 139.3 223.8 118 299 150
20-Dec-2022 456.95 170 139.3 300 118 299 150
25-Dec-2022 458.05 170 139.3 150 118 299 150
30-Dec-2022 461.2 170 139.3 117.7 118 120 150

Table 6.

12
INTERPRETATION:

PUT OPTION

BUYERS PAY OFF:

As brought 1 lot of SBI that is 132, those who buy for 2400 paid 90 premium

per share.

Settlement price is 2167.35

Spot price 2400.00

Strike price 2167.35

232.65

Premium (-) 90.00

142.65 x 132= 18829.8

Buyer Profit = Rs. 18829.8

Because it is positive it is in the money contract hence buyer will get more
profit, incase spot price increase buyer profit also increase.

SELLERS PAY OFF:

It is in the money for the buyer so it is in out of the money for the seller, hence

he is in loss.

The loss is equal to the profit of buyer i.e. 18829.8.

13
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

Graph:4

INTERPRETATION:

The future price of SBI is moving along with the market price.

If the buy price of the future is less than the settlement price, than the buyer of a future
gets profit.
If the selling price of the future is less than the settlement price, than the seller incur
losses

14
 ANALYSIS OF YES BANK:-

The objective of this analysis is to evaluate the profit/loss position of futures

and options. This analysis is based on sample data taken of YES BANK scrip.
This analysis considered the Dec 2022 contract of YES BANK. The lot size of
YES BANK is 1100, the time period in which this analysis done is from 1-12-
2022
Table:7

Market price Future price

Date

15-Dec-2018 12.45 12.82

20-Dec-2018 12.6 12.98
25-Dec-2018 12.55 12.93
30-Dec-2018 12.6 12.98
15-Dec-2019 13.1 13.49
20-Dec-2019 13.25 13.65
25-Dec-2019 14 14.42
30-Dec-2019 14.45 14.89
15-Dec-2020 14 14.42
20-Dec-2020 13.95 14.37
25-Dec-2020 13.75 14.16
30-Dec-2020 13.4 13.80
15-Dec-2021 13.15 13.55
20-Dec-2021 12.75 13.13
25-Dec-2021 13 13.39
30-Dec-2021 13.65 14.06
15-Dec-2022 13.55 13.96
20-Dec-2022 13.25 13.65
25-Dec-2022 13.2 13.60
30-Dec-2022 13.45 13.85

15
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

INTERPRETATION

If a person buys 1 lot i.e. 1100 futures of YES BANK on 1st Dec, 2022 and sells on 31st
Dec, 2022 then he will get a profit of 12.82-14.11= 1.29per share.

The closing price of YES BANK at the end of the contract period is 17.85 and this is
considered as settlement price.

The following table explains the market price and premiums of calls.
The first column explains trading date

Second column explains the SPOT market price in cash segment on that date.

The third column explains call premiums amounting at these strike prices; 230, 240, 250,

260, 270 and 280.

16
CALL OPTIONS:

Strike prices
Date
Market price 230 240 250 260 270 280
1-Dec-21 12.45 17.05 32.45 13.1 9 18.55 15
2-Dec-21 12.6 16.45 32.45 12.45 9 18.55 15
3-Dec-21 12.55 22.15 32.45 16.3 11.6 18.55 15
6-Dec-21 12.6 31.45 32.45 24.9 16 14.5 15
7-Dec-21 13.1 31.45 32.45 21.5 13 5.1 3
8-Dec-21 13.25 31.45 32.45 21.5 12.2 5.15 3
9-Dec-21 14 31.45 32.45 21.5 12.2 9.25 3
10-Dec-21 14.45 31.45 32.45 21.5 9.95 7.45 3
13-Dec-21 14 31.45 32.45 21.5 10.95 6.45 3
14-Dec-21 13.95 31.45 32.45 21.5 17.5 8 8
15-Dec-21 13.75 31.45 32.45 21.5 10.75 5.05 8
16-Dec-21 13.4 31.45 32.45 21.5 9 5.05 8
17-Dec-21 13.15 31.45 32.45 21.5 14 8.25 8
20-Dec-21 12.75 31.45 32.45 21.5 5.7 4 8
21-Dec-21 13 31.45 32.45 21.5 7.5 5.5 2
22-Dec-21 13.65 31.45 32.45 9.5 7.5 5.5 2
23-Dec-21 13.55 6 32.45 9.5 7.5 1.5 2
24-Dec-21 13.25 6 32.45 9.5 8 1.5 4
27-Dec-21 13.2 6 32.45 9.5 8 4.5 4
28-Dec-21 13.45 6 32.45 9.5 2.1 2.9 4
29-Dec-21 13.9 6 32.45 9.5 2.1 2.9 4
30-Dec-21 13.55 15.95 32.45 9.5 2.1 2.9 4
31-Dec-21 13.7

Table:8

17
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

INTERPRETATION:

CALL OPTION

BUYERS PAY OFF:

As brought 1 lot of YES BANK that is 1100, those who buy for 280 paid 17.05 premium

per share.

Settlement price is 251.45

Spot price 251.45

Strike price 230.00

21.45

Premium (-) 17.05

Buyer Profit = Rs. 4840
4.40 x 1100= 4840

Because it is positive it is in the money contract hence buyer will get more profit, incase
spot price increase buyer profit also increase.

SELLERS PAY OFF:

It is in the money for the buyer so it is in out of the money for the seller, hence he is in loss.
18
The loss is equal to the profit of buyer i.e. 4840.
 PUT OPTIONS:

Strike prices

Market price
Date 230 240 250 260 270 280
1-Dec-21 12.45 6.95 10.55 15.15 20.75 27.25 34.5
2-Dec-21 12.6 6.2 9.75 14.35 20 26.6 34.1
3-Dec-21 12.55 4.3 7.05 10.75 15.5 21.25 27.9
6-Dec-21 12.6 3 5.1 8.1 12.1 17.1 23.1
7-Dec-21 13.1 3.455.9 9.3 13.75 19.3 25.8
8-Dec-21 13.25 3.155.5 8.9 13.4 19 25.65
9-Dec-21 14 2.1 3.95 6.85 10.9 16.15 22.55
10-Dec-21 14.45 2.2 4.25 7.4 11.75 17.45 24.25
13-Dec-21 14 1.853.8 6.85 11.2 16.9 23.8
14-Dec-21 13.95 1.653.5 6.55 10.95 16.75 23.8
15-Dec-21 13.75 1.5 3.3 6.3 10.8 16.8 24.05
16-Dec-21 13.4 1.1 2.7 5.6 10.15 16.35 23.95
17-Dec-21 13.15 0.8 2.2 4.95 9.35 15.55 23.2
20-Dec-21 12.75 1.6 3.85 7.8 13.6 20.95 29.55
21-Dec-21 13 1.153.05 6.65 12.15 19.4 27.95
22-Dec-21 13.65 1.5 3.95 8.3 14.7 22.75 31.8
23-Dec-21 13.55 9.7516.2 24.1 33 42.5 52.25
24-Dec-21 13.25 22.1530.8 40.1 49.8 59.65 69.6
27-Dec-21 13.2 13 20 28.25 37.25 46.8 56.55
28-Dec-21 13.45 13.821.3 30 39.4 49.1 59
29-Dec-21 13.9 7 12.6 19.85 28.3 37.6 47.25
30-Dec-21 13.55 1.6 4.6 10 17.55 26.6 36.25
31-Dec-21 13.7 0.75 3.05 8.3 16.2 25.6 35.45

Table:9

19
INTERPRETATION:

PUT OPTION

BUYERS PAY OFF:

Those who have purchase put option at a strike price of 250, the premium payable is 15.15

On the expiry date the spot market price enclosed at 251.45. As it is out of the money for

the buyer and in the money for the seller, hence the buyer is in loss.

So the buyer will lose only premium i.e. 15.15 per share.

So the total loss will be 16665 i.e. 15.15*1100

SELLERS PAY OFF:

As Seller is entitled only for premium if he is in profit.

So his profit is only premium i.e. 15.15 * 1100 = 16665

20
 800

780

760

740

720 Market price

Future price
700

680

660
8 8 8 8 9 9 9 9 0 0 0 0 1 1 1 1 2 2 2 2
ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-1 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2 ec-2
-D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D -D
1 5 2 0 25 30 15 20 2 5 3 0 1 5 2 0 25 30 1 5 2 0 2 5 3 0 15 20 25 30

INTERPRETATION:

The future price of YES BANK is moving along with the market price.

If the buy price of the future is less than the settlement price, than the buyer of a future
gets profit.

If the selling price of the future is less than the settlement price, than the seller incur
losses.

21
 CHAPTER V

FINDINGS
SUGGESTIONS
AND
CONCLUSION

22
 FINDINGS

 Derivatives market is an innovation to cash market. Approximately its daily

turnover reaches to the equal stage of cash market. The average daily turnover of
the NSE derivative segments
 In cash market the profit/loss of the investor depends on the market price of the
underlying asset. The investor may incur huge profits or he may incur Huge losses.
But in derivatives segment the investor enjoys huge profits with limited downside.
 In cash market the investor has to pay the total money, but in derivatives the
investor has to pay premiums or margins, which are some percentage of total
contract.
 Derivatives are mostly used for hedging purpose.
 In derivative segment the profit/loss of the option writer purely depends on the
fluctuations of the underlying asset.

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 SUGESSTIONS

 The derivatives market is newly started in India and it is not known by every
investor, so SEBI has to take steps to create awareness among the investors about
the derivative segment.
 In order to increase the derivatives market in India, SEBI should revise some of
their regulations like contract size, participation of FII in the derivatives market.
 Contract size should be minimized because small investors cannot afford this much
of huge premiums.
 SEBI has to take further steps in the risk management mechanism.
 SEBI has to take measures to use effectively the derivatives segment as a tool of
hedging.

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 CONCLUSION

 In bullish market the call option writer incurs more losses so the investor is
suggested to go for a call option to hold, where as the put option holder suffers in a
bullish market, so he is suggested to write a put option.
 In bearish market the call option holder will incur more losses so the investor is
suggested to go for a call option to write, where as the put option writer will get
more losses, so he is suggested to hold a put option.
 In the above analysis the market price of YES bank is having low volatility, so the
call option writer enjoys more profits to holders.

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 BIBLIOGRAPHY
BOOKS:

 Derivatives Dealers Module Work Book - NCFM (October 2005)

 Gordon and Natarajan, (2006) ‗Financial Markets and Services‘ (third edition)
Himalaya publishers
 Options, Futures and Other Derivatives – John C Hull – (2018)

 Pricing and Trading Interest Rate Derivatives – J Hamish M Darbyshire – (2019)

JOURNALS
 SELF ASSESEMENT
 BUSINESS LINES
 TIMES OF INDIA
 ECONOMIC TIMES
 HYDERABAD STANDARD

WEBSITES

 http://www.nseindia/content/fo/fo_historicaldata.htm
 http://www.nseindia/content/equities/eq_historicaldata.htm
 http://www.derivativesindia/scripts/glossary/indexobasic.asp
 http://www.bseindia/about/derivati.asp#typesofprod.htm
 www.google.com
 www.quickmba.com/finance/ries-trout/positionsing

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