Dunna

DERIVATIVES
Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset. DERIVATIVE PRODUCTS Derivative contracts have several variants. The most common variants are forwards, futures, options and swaps. Here is a brief look at various derivatives contracts that have come to be used. Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at today's pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchangetraded contracts. Options: Options are of two types - calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Warrants: Options generally have lives of up to one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longerdated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of up to three years.
Baskets: Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average of a basket of assets. Equity index options are a form of basket options. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are.
Interest rate swaps: These entail swapping only the interest related cash
flows between the parties in the same currency.

Currency swaps: These entail swapping both principal and interest
between the parties, with the cash flows in one direction being in a different currency than those in the opposite direction. Swaptions: Swaptions are options to buy or sell a swap that will become operative at the expiry of the options. Thus, a swaption is an option on a forward swap. Rather than have calls and puts, the swaptions market has receiver swaptions and payer swaptions. A receiver swaption is an option to receive fixed and pay floating. A payer swaption is an option to pay fixed and receive floating. OPTIONS An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties. Calls and Puts The two types of options are calls and puts: A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase substantially before the option expires.
A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires. OPTION TERMINOLOGY
Index options: These options have the index as the underlying. Some options
are European while others are American. Like index futures contracts, index options contracts are also cash settled.
Stock options:
Stock options are options on individual stocks. Options
currently trade on over 500 stocks in the United States. A contract gives the holder the right to buy or sell shares at the specified price.
Buyer of an option:
The buyer of an option is the one who by paying the
option premium buys the right but not the obligation to exercise his option on the seller/writer.
Writer of an option: The writer of a call/put option is the one who receives the
option premium and is thereby obliged to sell/buy the asset if the buyer exercises on him. There are two basic types of options, call options and put options.
Call option: A call option gives the holder the right but not the obligation to Put option: A put option gives the holder the right but not the obligation to sell Option price/premium: Option price is the price, which the option buyer pays Expiration date: The date specified in the options contract is known as the Strike price: The price specified in the options contract is known as the strike American options: American options are options that can be exercised at any
buy an asset by a certain date for a certain price.
an asset by a certain date for a certain price.
to the option seller. It is also referred to as the option premium.
expiration date, the exercise date, the strike date or the maturity.
price or the exercise price.
time up to the expiration date. Most exchange-traded options are American.
European options: European options are options that can be exercised only on
the expiration date itself. European options are easier to analyze than American options, and properties of an American option are frequently deduced from those of its European counterpart.
In-the-money option: An in-the-money (ITM) option is an option that would
lead to a positive cash flow to the holder if it were exercised immediately. A call option on the index is said to be in-the-money when the current index stands at a level higher than the strike price (i.e. spot price > strike price). If the index is much higher than the strike price, the call is said to be deep ITM. In the case of a put, the put is ITM if the index is below the strike price.
At-the-money option: An at-the-money (ATM) option is an option that would
lead to zero cash flow if it were exercised immediately. An option on the index is atthe-money when the current index equals the strike price (i.e. spot price = strike price).
Out-of-the-money option: An out-of-the-money (OTM) option is an option that
would lead to a negative cash flow if it were exercised immediately. A call option on the index is out-of-the-money when the current index stands at a level which is less than the strike price (i.e. spot price < strike price). If the index is much lower than the strike price, the call is said to be deep OTM. In the case of a put, the put is OTM if the index is above the strike price. The Relationship between the options strike price and market price: MARKET SCENARIO Market price>strike price Market price<strike price Market price=strike price Market price~_strike price CALL OPTION In-the-money Outof-the-money At-the-money Near-the-money PUT OPTION Out-of-the-money In-the-money At-the-money Near-the-money
Intrinsic value of an option: The option premium can be broken down into
two components - intrinsic value and time value. The intrinsic value of a call is the
amount the option is ITM, if it is ITM. If the call is OTM, its intrinsic value is zero. Putting it another way, the intrinsic value of a call is Max[0, (St K)] which means the intrinsic value of a call is the greater of 0 or (St K). Similarly, the intrinsic value of a put is Max[0, K St],i.e. the greater of 0 or (K St). K is the strike price and St is the spot price.
Time value of an option: The time value of an option is the difference between
its premium and its intrinsic value. Both calls and puts have time value. An option that is OTM or ATM has only time value. Usually, the maximum time value exists when the option is ATM. The longer the time to expiration, the greater is an option's time value, all else equal. At expiration, an option should have no time value. HOW THE OPTIONS MARKET WORK Options are contracts on some underlying trading instrument - shares of stock, bonds, a commodity, a mortgage loan, etc. But regardless of what the option is on, there are common features. One of the most basic is the contract feature specifying what the option owner has actually contracted for. CALL A 'call' confers on the (option) contract holder the right to buy an asset at a stated price on or before a specified expiration date. A right to buy not an obligation. The call owner always has the option to let his option expire. (Of course, he then loses the initial money invested in buying the contract.) Call buyers are betting the underlying asset - the stock, bond, commodity, etc - will increase in price before the expiration date. And, not only rise, but rise enough to make a profit.
How much is enough?
The price must rise enough to cover the difference between the market price and the strike price (the price at which the stock, say, must be bought). And, since the option itself has a cost, the price has to raise enough to cover that additional amount. That cost is called 'the premium'. The cost (the premium) of an option - whether call or put - is determined by several factors, including the price of the underlying asset, the strike price, the time remaining on the option, and others. (The time remaining is particularly important. Simple common sense suggests that if you have 90 days to exercise an option, your risk is lower than if you have only one day. In 90 days the price may well rise the several points needed to generate a profit. With only one day remaining, the odds are lower.) Suppose it's April 1, for example, and Microsoft (MSFT) has a market price of 27. Call options for June 30 are selling for 3 with a strike price of $30. You buy one contract for 100 shares. So, if you held until expiration you either lose 300 (3 x 100, the initial price of the contract not including commission), or buy the underlying stock at 30. If the current market price were 35 you've made 200. (35 - (30+3) = 2 per share x 100 shares, ignoring commissions.) When the market price of a share is above the strike price, the option holder is 'in the money'. If the market price is lower, he's 'out of the money'. PUT A 'put', by contrast, gives the option buyer the right to sell an asset at a certain price by a stated date. The right, not the obligation. Puts are similar to 'shorting stock', in this sense. Put buyers are betting the stock price will fall before the option expires.
In this case the market price must fall below the strike price in order to garner a profit from exercising the option. (Ignoring the cost of the put, for simplicity.) Under those circumstances, the option holder is 'in the money'. For example, take the same situation as above but let the option be a put. If the market price falls to, say 25, your profit would be: First, 3 x 100 = 300 = Cost of put, excluding commissions. Then, buy 100 shares at 25 per share = 2,500 to repay broker 'loan' (since shorting stock involves borrowing shares you don't own, then repaying later). Finally, sell 100 shares at Strike price = 30, 100 x 30 = 3,000 Therefore, your profit = (3000 - 2500) - (300) = 200. (Actually, the broker takes care of all the underlying mechanics. The investor merely orders the trades at a given time and date. Economic Importance of the Options Market There are two main reasons why an investor would use options: to speculate and to hedge. Speculation You can think of speculation as betting on the movement of a security. The advantage of options is that you aren't limited to making a profit only when the market goes up. Because of the versatility of options, you can also make money when the market goes down or even sideways Speculation is the territory in which the big money is made - and lost. The use of options in this manner is the reason options have the reputation of being risky. This is because when you buy an option, you have to be correct in determining not only the direction of the stock's movement, but also the magnitude and the timing of this movement. To succeed, you must correctly predict whether a stock will go up or down, and you have to be right about how much the price will change as well as the
time frame it will take for all this to happen. And don't forget commissions! The combinations of these factors means the odds are stacked against you. Hedging The other function of options is hedging. Think of this as an insurance policy. Just as you insure your house or car, options can be used to insure your investments against a downturn. Critics of options say that if you are so unsure of your stock pick that you need a hedge, you shouldn't make the investment. On the other hand, there is no doubt that hedging strategies can be useful, especially for large institutions. Even the individual investor can benefit. Imagine that you wanted to take advantage of technology stocks and their upside, but say you also wanted to limit any losses. By using options, you would be able to restrict your downside while enjoying the full upside in a cost-effective way. Settlement of options contracts Options contracts have three types of settlements, daily premium settlement, exercise settlement, interim exercise settlement in the case of option contracts on securities and final settlement. Daily premium settlement Buyer of an option is obligated to pay the premium towards the options purchased by him. Similarly, the seller of an option is entitled to receive the premium for the option sold by him. The premium payable amount and the premium receivable amount are netted to compute the net premium payable or receivable amount for each client for each option contract. Exercise settlement Although most option buyers and sellers close out their options positions by an offsetting closing transaction, an understanding of exercise can help an option buyer determine whether exercise might be more advantageous than an offsetting sale of
the option. There is always a possibility of the option seller being assigned an exercise. Once an exercise of an option has been assigned to an option seller, the option seller is bound to fulfill his obligation (meaning, pay the cash settlement amount in the case of a cash-settled option) even though he may not yet have been notified of the assignment. Interim exercise settlement Interim exercise settlement takes place only for option contracts on securities. An investor can exercise his in-the-money options at any time during trading hours, through his trading member. Interim exercise settlement is effected for such options at the close of the trading hours, on the day of exercise. Valid exercised option contracts are assigned to short positions in the option contract with the same series (i.e. having the same underlying, same expiry date and same strike price), on a random basis, at the client level. The CM who has exercised the option receives the exercise settlement value per unit of the option from the CM who has been assigned the option contract. Final exercise settlement Final exercise settlement is effected for all open long in-the-money strike price options existing at the close of trading hours, on the expiration day of an option contract. All such long positions are exercised and automatically assigned to short positions in option contracts with the same series, on a random basis. The investor who has long in-the-money options on the expiry date will receive the exercise settlement value per unit of the option from the investor who has been assigned the option contract. Exercise process The period during which an option is exercisable depends on the style of the option. On NSE, index options are European style, i.e. options are only subject to automatic exercise on the expiration day, if they are in-the-money. As compared to this, options on securities are American style. In such cases, the exercise is automatic
on the expiration day, and voluntary prior to the expiration day of the option contract, provided they are in-the-money. PARTICIPANTS IN THE OPTIONS MARKET There are four types of participants in the options markets depending on the position they take: 1. Buyers of calls 2. Sellers of calls 3. Buyers of puts 4. Sellers of puts People who buy options are called holders and those who sell options are called writers; furthermore, buyers are said to have long positions,and sellers are said to have short positions. Here is the important distinction between buyers and sellers: Call holders and put holders(buyers) are not obligated to buy are sell; they have the choice to exercise their rights if they choose.
Call writers and put writers(sellers) however are obligated to buy or sell. This means that a seller may be required to make good on their Promise to buy or sell.
THERE ARE FOUR ENTITIES IN THE TRADING SYSTEM: 1.Trading members: Trading members are members of NSE. They can trade either
on their own account or on behalf of their clients including participants. The exchange assigns a trading member ID to each trading member. Each trading member can have more than one user. The number of users allowed for each trading member is notified by the exchange from time to time. Each user of a trading member must be registered with the
exchange and is assigned a unique user ID. The unique trading member ID functions as reference for all orders /trades of different users. This ID is common for all users of a particular trading member. It is the responsibility of the trading member to maintain adequate control over persons having access to the firms user IDs. 2.Clearing members: clearing members are members of NSCCL they carryout risk management activities and conformation/enquiry of trades through the trading system. 3. Professional clearing members: A professional clearing members is a clearing member who is not a trading member. Typically, banks and custodians become professional clearing members and clear and settle for their trading members. 4. Participants: A participant is a client of trading members like financial clearing member. REGULATORY FRAME WORK The trading of derivatives is governed by the provisions contained in the SC(R)A, the SEBI Act, the rules and regulations framed there under and the rules and regulations framed there under and the rules and bye-laws of stock exchange. SECURITIES CONTRACT (REGULATION) ACT,1956 SC(R)A aims at preventing undesirable transaction in securities by regulating the business of dealing there in and by providing for certain other matters connected there with. This is the principal act,which governed the trading of securities in India. The term securities which govern the trading of securities in India? The term securities has been defined in the SC(R)A. as per section 2(h), the securities include, 1. Shares, scripts,stocks,bonds,denenture stock or other marketable securities of a like nature in or of any in corporate company to other body corporate. institutions.
These clients may trade through multiple trading members but settle through a single
2. Derivative . 3. Units of any other instrument issued by any collect investment scheme to the investors in such schemes. 4. Government security. 5. Such other instrument as may be declared by the central government to be securities. 6. Rights of interest in insecurities. SECURITIES EXCHANGE BOARD OF INDIA ACT,1992: SEBI Act,1992 provides fro establishment of securities and exchange board of India (SEBI) with statutory powers for a. protecting the interest of investors in securities b. promoting the development of the securities market and c. regulating the securities market Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities in addition to all intermediaries and person associated with securities market. SEBI has been obligated to perform the fore side function by such measures as it thinks fit. In particular, it has power for:
Regulating the business in stock exchanges and any other securities market. Registering and regulating the workings of stock brokers sub brokers etc. Promotion and regulating self regulatory organization. Prohibiting fraudulent and unfair trade practices.
Calling for information from, undertaking inspection,conducting inquires and audits of the stock exchanges, securities market. mutual funds and other persons associated with the securities market and intermediaries and self regulatory organization in the
Performing such functions and exercising according to securities contract (regulation) Act,1956 as may be deligated to it by the central government.
REGULATION FOR CLEARING AND SETTLEMENT: 1. The clearing corporation should ensure none of the board member has trading interest. 2. The regulations relating to arbitration need tobe incorporated the clearing corporation regulation. 3. The regulation relating to the investor protection fund for the derivatives
must be include in the clearing corporation/regulations. 4. The clearing member shall collect margins from his constituents (clients
trading members) . He shall clear and shall settle deals in derivative contract on behalf of the constituent only on the receipt of such minimum margin. 5. The clearing corporation must lay down procedure for periodic review of the net worth of its members. 6. Any change in the byelaws,rules or regulation which are covered under
suggestive byelaws for regulations and control of trading and settlement of derivatives contract would require prior approval of SEBI. 7. The L.C.Guptha committee has recommended the clearing corporation must perform full notation i.e., the clearing corporation should interpose itself between both legs of every trade.
8.
The definition of net worth has prescribed by SEBI needs to be incorporated in the application regulation of the clearing corporation.
9.
specific provision chapter relating to the declaration of default must be incorporated by the clearing corporation in its regulation.
10. The clearing corporation should have the capabilities to segregate upfront /initial margins deposited by clearing members for trade s on corporation shall hold clients margin money interests for the clients purposed only and should not allow its diversion for any other purpose . This condition must be in corrupted in the clearing corporation regulations. 11. Exposure limits based on the value at risk concept will be used prescribed by SEBI from time to time. 12. The clearing corporation must inform how it proposes to of its members. monitor the exposure and the
exposure limits will be continuous monitored these shall be within the limits
INDUSTRY PROFILE
Stock market is a place where buying and selling of securities takes place it has become as essential instrument for lot of people in making the money. Daily a new bunch of people entering the stock market for doing the stock trading and making the money. For that purpose the analysis of stock market is quite important for the investors otherwise there is a chance of losing their money. So a study has been conducted to evaluate the performance of various companies which will guide the investors in selecting their investment options Stock Market is synonymous with the word gambling for both the experts as well as
beginners. It is highly advisable to understand the functioning of the stock market before making any transaction or investment. And this can be easily accomplished by performing quality research, paying heed to experts opinion and proper consideration to the trends and tactics of the market. It is very important to learn the technique of buying and selling the
shares with the perfect sense of timing in order to earn huge profits. The companies offer their shares to the public, so that the interested investors can participate and buy their shares. The process of buying and selling of stock is executed in Stock Exchange. However this is just an outlay or a framework of the stock market. The real game starts with the tactics and strategies that are used by the investors. And for this, you may have to learn many new economic terms used to explain the moods of the stock market. First and foremost vital step is to understand the trends of the market, often termed as market movements. There are adequate patterns, following which the stocks and supplies rise and fall. The reason could be anything from spoilt reputation of a firm to the infamy name of the company, which is not necessary to be noted. Whats important here is to concentrate on the time as in when the value of a share is rising and when it is going down. When the value is touching sky, it is best to sell the shares so that you can make big gains. Timing rules the stocks merchandising. Proper understanding of the trends can only be earned by experience and focus. And once you are clear with market trends you can easily manage your investments with right timing. Another is the stock trading systems. Nowadays many software companies provide valuable information on stock trading systems. Through this the investors can understand and manage the trends of many stocks. They can even seek assistance to know how profitable it will be to invest in a particular company. These trading systems are available with many shares that are cost-effective if invested in, letting you free from the extra burden of work. But dont forget before starting trading or investing in Indian stock market you need to do your homework as in proper research is required. STOCK MARKETS IN INDIA Dealings in stock and shares began with the merchant venturers in the seventeenth century. Gradually, an informal market developed around the coffee house in the City of London. In 1773, New Jonathan's Coffee House became the stock exchange, although it was not formally constituted until 1802, with some 550 subscribers and 100 clerks. Although
London was overwhelmingly the largest exchange in the UK (it was the world's largest until World War I), the growth of the industrial revolution prompted the establishment of local share markets in the other parts of the country - more than 30 at the peak. These markets first began to associate in 1890, when the Council of Associated Stock Exchanges was formed. By 1967 the country exchanges had grouped themselves into six regional exchanges and in 1973 all seven exchanges in the British Isles unite to form the Stock Exchange of Great Britain and Ireland, with trading floors in London, Birmingham, Manchester, Liverpool, Glasgow and Dublin. The provincial exchanges are regulated by the London Stock Exchange Council, although the day-to-day administration is delegated to local councils. All are subject to the same dealing legislation. The provincial exchanges specialise in the listing of local stocks and shares, although all securities listed on the London stock Exchange may also be traded on the provincial exchanges The present market includes not only the ordinary shares of local and foreign companies and fixed interest securities issued by private borrowers, but also the primary and secondary markets in British government securities (gilt-edged). The exchange is self-regulating and operates under its own rules and Articles of Association. Management of the exchange is under the control of a council of 46, elected from the exchange members. Despite considerable modifications, the basic system of the stock exchange remained unchanged from 1911 until 1985. Then, following a court decision on fixed commissions, major changes modified off by an agreement between the British government and stock exchange, when the exchange undertook to withdraw what the government considered to be restrictive practices, particulary fixed commissions.
There had long been a rigid division between stock exchange member firms of brokers and jobbers, i.e. between firms acting entirely as agents on behalf of investors but not markets, and the jobbing firms which made markets, quoting two-way prices, but had no direct contact with the public. Since it was generally considered that this so-called single capacity system was incompatible with negotiated commissions, it was abolished as part of the widespread deregulation of the market under October 1986 Big Bang. The introduction of dual capacity involves member firms becoming broker-dealers. Trading is based on a system of committed market makers who are free to conduct agency business. Equally, boker-dealers executing client orders can take positions but are obliged to state clearly on any given transaction whether they are acting as principals or as agents. Some brokers have elected to conduct agency business only. In anticipation of Big Bang, the large majority of UK stock-broking and jobbing firms were bought by domestic and international financial giants (often banks) as the rush developed to establish a foothold in the revolutionary world of the deregulated London securities market. In the wake of October 1987 crash, and the dramatic slowdown of trading activity, there were inevitably several celebrated and costly withdrawals. Of those firms remaining in the market, some are scaling back the range of UK stock they cover and even the clients they serve. Furthermore, many City-based securities houses are turning to Europes under-researched and comparatively uncompetitive stock markets. There are six stock exchanges in the United Kingdom and Ireland which form the Associated Stock Exchange. NATIONAL STOCK EXCHANGE The NSE was incorporated in Nov 1992 with an equity capital of Rs. 25 crores. The international security constancy (ISC) of Hong Kong has helped in setting up NSEISC has prepared the detailed business plan and installation of hard ware and soft ware systems. The promotions for NSE were financial institutions, insurance companies, banks and SEBI capital market LTD, infrastructure leasing and financial services LTD and stock holding corporation ltd. It has been set up to strengthen the move towards professionalisation of the capital market as well as provide nation wide securities trading facilities to investors. NSDE is not an
exchange in the striding sense where brokers owned and manage the exchange. A two-tier administration set up involving a company board and a governing aboard of the exchange is envisaged. NSE is a national market for shares PSU bonds, debentures and government securities since infrastructure and trading facilities are provided. NSE NIFTY The NSE on April 22, 1996 launched a new equity indeed. The NSE 50. The new index, which replaces the existing NSE-100 index, is expected to serve as an appropriate index for the new segment of futures and options. Nifty means national index for fifty stocks. The NSE 50 comprises 50 companies that represent 20 board industry groups with an aggregate market capitalization of around Rs. 1,70,000 Crs. All companies included in the index have a market capitalization in excess of Rs 500 crores each and should have traded for 85% of trading days at an impact cost of less than 1.5% corporation ltd. 85% of the base period for the index is the close of prices on Nov 3 rd, 1995, which make\s one year of completion of operation of NSEs capital market segment. The base value of the index has been set at 1000. NSE MIDCAP INDEX The NSE madcap index or the junior nifty comprises fifty stocks those represents21 abroad industry groups and will provide proper representation of the madcap segment of the Indian capital market. All stocks in the index should have market capitalization of greater than Rs. 200 crores and should have traded 85% of the trading days at an impact cost of less than 2.5%. The base period for the index is Nov 4 th, 1996, which signifies 2 years of completion of operations of the capital market segment of the operations. The base value of the index has been set at 1000. MIDCAP NSE
Average daily turnover of the present scenario 2,58,212 (lakhs) and number of averages daily trades 2160 (lakhs). At present there are 24 stock exchanges recognized under the securities contract (regulation) Act, 1956. They are. History of the National Stock Exchange of India : Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the incorporation of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has become the largest stock exchange in India. Three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). About the National Stock Exchange of India : In the fast growing Indian financial market, there are 23 stock exchanges trading securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and most advanced exchange with 1016 companies listed and 726 trading members.
The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the ownership as well as the management does not have a right to trade on the Exchange. Only qualified traders can be involved in the securities trading. The NSE is one of the few exchanges in the world trading all types of securities on a single platform, which is divided into three segments: Wholesale Debt Market (WDM), Capital Market (CM), and Futures & Options (F&O) Market. Each segment has experienced a significant growth throughout a few years of their launch. While the WDM segment has accumulated the annual growth of over 36% since its opening in 1994, the CM segment has increased by even 61% during the same period. The National Stock Exchange of India has stringent requirements and criteria for the companies listed on the Exchange. Minimum capital requirements, project appraisal, and company's track record are just a few of the criteria. In addition, listed companies pay variable listing fees based on their corporate capital size. The National Stock Exchange of India Ltd. provides its clients with a single, fully electronic trading platform that is operated through a VSAT network. Unlike most world exchanges, the NSE uses the satellite communication system that connects traders from 345 Indian cities. The advanced technologies enable up to 6 million trades to be operated daily on the NSE trading platform. NSE Group:
India Index Services & Products Ltd. (IISL) National Securities Clearing Corporation Ltd. (NSCCL) NSE.IT Ltd. National Securities Depository Ltd. (NSDL)
NSE Promoters :-NSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries:

Industrial Development Bank of India Limited Industrial Finance Corporation of India Limited
Life Insurance Corporation of India State Bank of India ICICI Bank Limited IL & FS Trust Company Limited Stock Holding Corporation of India Limited SBI Capital Markets Limited Bank of Baroda Canara Bank General Insurance Corporation of India National Insurance Company Limited The New India Assurance Company Limited The Oriental Insurance Company Limited United India Insurance Company Limited Punjab National Bank Oriental Bank of Commerce Indian Bank Union Bank of India Infrastructure Development Finance Company Ltd
BOMBAY STOCK EXCHANGE: This stock exchange, Mumbai, popularly known as BSE was established in 1875 as the native share and stock brokers association, as a voluntary non-profit making association. It has an evolved over the years into its present status as the premiere stock exchange in the country. It may be noted that the stock exchange is the older on in Asia, even older than the Tokyo stock exchange, which was founded in 1878. The exchange, while providing as an efficient and transparent market for trading in securities, upholds the interest of the investors and ensures redressed of their grievances, weather against the companies or this own member brokers, it also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investor education programmers.
A governing board comprised of 9 elected directors, 2 SEBI nominees, 7 Public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchange. The executive director as the chief executive officer is responsible for the day today administration of the exchange. The average daily turnover of the exchange during the year 2000 01 (April March) was Rs. 3984.19 crores and average number of daily trades Rs. 5.69 Lakhs. The average daily turn over of the exchange during the year 2002 03 has declined and number of average daily traders during the period is also decreased. The ban on all deferral products like BLESS ANDALBM in the Indian capital markets by SEBI with effect from July 2, 2001 abolition of account period settlements, introduction of compulsory rolling settlements in all scripts traded on the exchanges with Compulsory rolling settlements in all scripts traded on the exchanged with effect from Dec 31, 2001. etc.. Have adversely impacted the liquidity and consequently there is a considerable decline in the daily turnover at the exchange. The average daily turnover of the exchange present scenario is 110363 (lakhs) and number of average daily trades 1057 (lakhs). BSE INDICES: In order to enable the market participants, analysts etc. to track the various ups and down in the Indian stock market, the exchange has introduced in 1986 an equity stock index called BSE SENSEX that subsequently became the barometer of the moments of the share prices in the Indian stock market. It is a market capitalization weighted index of 30 components stocks representing a sample of large, well established and leading companies. The sensex is widely reported in both domestic and international markets through print as well as electronic media. Sensex is calculated using a market capitalization method. As per this methodology, the level of the index reflects the total market value of all 30 components stocks from different industry related to determined by multiplying the price of its stock by
the number of shares outstanding. Statisticians call an index of a set of combined variables (such as price and number of shares) a composite index. An indexed number is used to represent the results of this calculation in order to make the value easier to work with a track over a time. It is much easier to graph a chart based on indexed values than one based on actual values world over majority of the well known indices are constructed using market capitalization weighted method indexed. In practice the daily calculation of SENSEX is done by dividing the aggregate market value of the 30 as companies in the index by a number called the index divisor. The divisor is the only link to the original base period value of the SENSEX. The divisor deeps the index comparable over a period or time and if the reference point for the entire index maintenance adjustments. SENSEX is widely used to describe the mood in the Indian stock markets. Base year average is changed as per the formula, New base year average = old base year average *(new market value/old market value). How to calculate BSE SENSEX? consideration, stock prices of 30 different BSE Listed companies. whether the graph of stocks are going up or down. Calculation of sensex is made, taking into It is calculated on the basis of free-float market capitalization method. It is one of the suitable In BSE, Sensex is considered to be an indicator of the stocks. It is necessary to depict methods for calculating stock market index. The methods to calculate stock market indexes keep on fluctuating from time to time. Sensex needs to be an accurate index so as to depict the BSE stocks properly. It is essential to understand how the sensex is calculated for which it is really necessary to understand the terms free-float market capitalization method and market capitalization method.
STOCK EXCHANGES IN INDIA

NAME OF THE STOCK EXCHANGE
Bombay Stock Exchange Ahmedabad Share and Stock Broker Association Calcutta Stock Exchange Association, Ltd. Delhi Stock Exchange Association, Ltd. Madras Stock Exchange Association, Ltd. Indore Stock Brokers Association, Ltd. Bangalore Stock Exchange Hyderabad Stock Exchange Cochin Stock Exchange Pune Stock Exchange U.P. Stock Exchange Ludhiana Stock Exchange Jaipur Stock Exchange, Ltd. Gauhati Stock Exchange, Ltd.
YEAR ESTBLISHED
1875 1957 1957 1957 1957 1958 1963 1943 1978 1982 1982 1983 1983-84 1984
Mangalore Stock Exchange Maghad Stock Exchange Limited, Patna. Bhuvaneswar Stock Exchange Association, Ltd. Over the counter exchange of India, Bombay. Saurashtra Kuth Stock Exchange Limited Vsdodard Stock Exchange Ltd. Coimbatore Stock Exchange Ltd. The Meerut S tock Exchange National Stock Exchange Integrated Stock Exchange
1985 1986 1989 1989 1990 1991 1991 1991 1991 1999
COMPANY PROFILE
A group of professionals formed a company called Probity Research & Services Pvt Ltd. The name was later changed to India Info line Ltd. The objective was to provide unbiased and independent information to market intermediaries and investors. The company established on October 18, 1995 as Probity Research & Services. Launched Internet portal www.indiaInfoline.com in May 1999. Commenced distribution of personal financial products like mutual Funds and RBI bonds in April 2000. Launched online trading in shares and securities branded as www.5paisa.com in July 2000. Started life insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance. Became a depository participant of NSDL in September 2001. Launched stock messaging service in May 2003. Acquired commodities broking license in March2004. Launched portfolio management services in August 2004. Listed on NSE and BSE on May 17, 2005. Acquired NBFC license in May 2005. Acquired 75% stake holding in Money tree Consultancy services, which is a distributor of mortgages and other Loan products, in October 2005. Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in December 2005 through which we have ventured into Merchant Banking. DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.80 crores in December 2005. Their current stake in India Info line is a little over 14% as on 31st March 2007. Bennett Coleman & Co Ltd (BCCL) invested Rs.20 crores in India Infoline by way of preferential allotment in December 2005. Became a depository participant of CDSL in June 2006. Merger of India Infoline Securities Private Limited with India Infoline Limited in January 2007. Entered into an alliance with Bank of Baroda for Baroda e-trading in February 2007. IRDA license for Insurance broking in April 2007. India Infoline are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology. The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from
Equity research Equities and derivatives trading Commodities trading Portfolio Management Services Mutual Funds, Life Insurance Fixed deposits GoI bonds and Instruments to loan products and Investment banking VISION & STRATEGY OF THE COMPANY:Its vision is to be the most respected company in the financial services space To make its vision a reality, they have to command respect from all constituents that influence them or are influenced by them. The box below elaborates how they propose to attain their vision of being the most respected company in the space.
Businesses strategy Focus on core competence in financial services Ensure de-risked business through multiple products and diverse revenue streams Asset-heavy or long gestation businesses through separate JVs/ group companies
Customers strategy Drive stickiness through high quality research & service Maintain cutting-edge proprietary technology Wide, multi-modal network serving as one stop shop to customers
People strategy Attract exceptionally talented and driven people Ensure conducive environment Liberal Ownership sharing
BUSINESS MODEL
Equities, Mutual Funds, Life Insurance
Wealth Management, Advisory, Financing
Investment Banking, Corporate debt
Institutional Equities,Derivative s
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a Retail member of both the exchanges. It is engaged in the businesses of affluent Equities broking,
CUSTOMER SEGMENT
Wealth Advisory corporate Services and
institutional Portfolio Management Services.

It offers broking services in the Cash and Derivatives segments of the NSE as well as
infstitutional the Cash segment of the BSE.
It is registered with NSDL (National securities depository limited) & CDSL (central securities depository limited) as a depository participant, providing a one-stop solution for clients trading in the equities market.
India Infoline Group
India Infoline Ltd
India Infoline
India Infoline commoditie
IIFL (Asia) pvt Ltd
India Infoline Media Research
India Infoline Marketing
Money line credit Ltd
India Infoline housing Ltd
India Infoline Distribution co Ltd
India Infoline Insurance
India Infoline Insurance
Infoline Media and Research Services Limited The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson
First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.
India Infoline Commodities Limited
India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contracyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities.
India Infoline Marketing & Services
India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited
(a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business India Infoline Investment Services Limited Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline
Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step-down subsidiaries (a) India Infoline Distribution Company Limited (distribution of retail loan products) (b) (c) Money line Credit Limited (consumer finance) India Infoline Housing Finance Limited (housing finance)
IIFL (Asia) Private Limited: IIFL (Asia) Private Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars .
Management team
Team with impeccable academic and professional credentials Open door, transparent and performance oriented culture Increasing level of employee Mr. Nirmal Jain Nirmal Jain ,MBA (IIM,Ahmedabad) and a charted and cost Accountant,founded Indias leading financial services company India Infoline Ltd,in 1995,providing globally acclaimed financial services in equities and commodities broking,Life insurance and mutual funds distribution,among others.Mr.Jain began his career in 1989 with Hindustan Levers commodity export business,contributing tremendously to its growth. He was also associated with Inquire-Indian Equity Research,which he co-founded in 1994 to set new standards in equity research in India. Mr. R.Venkataraman:
R.Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B.Tech (Electronics and Electrical communications Engineering, IIT kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline board in July 1999. He p1reviously held senior managerial positions in ICICI Ltd, including ICICI securities limited, their investment banking joint venture with J P Morgan of USA and with BWZ and Taib capital corporation limited. He was also Assistant Vice President with G E capital services India Limited in their private equity division, possessing a varied experience of more than 16 years in the financial services sector. PRODUCTS & SERVICES EQUITIES India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist
prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerized access. India Infoline made it possible for clients to view transaction costs and ledger updates in real time. PMS The Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. The company invests the resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. RESEARCH Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Equity investment professionals routinely use the companys research and models as integral tools in their work. They choose Ford Equity Research when they can clear investors doubts. COMMODITIES India Infolines extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 crI to Rs 20.02 cr. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.
MORTGAGES
During the year under review, India Infoline acquired a 75% stake in Money tree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. India Infoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations. HOME LOANS Get expert advice that suits the customers needs Loan against residential and commercial property Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement Personal Loans Freedom to choose from 4 flexible options to repay Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement
INVEST ONLINE India Infoline has made investing in Mutual funds and primary market so
effortless. All the investors have to do is register with the company and thats all. No paperwork no queues and No registration charges. INVEST IN MF India Infoline offers the investors a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.
IPOs investors could also invest in Initial Public Offers (IPOs) online without
going through the hassles of filling any application form/ paperwork. SMS The trader of today are constantly on the move. But how do they stay connected to the market while on the move? They subscribe to India Infoline's Stock Messaging Service and get Market on their Mobile! There are three products under SMS Service: Market on the move. Best of the lot. VAS (Value Added Service) INSURANCE An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, the company has employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Companys entry into the insurance sector derisked the Company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy. NEWS LETTERS The Daily Market Strategy is the morning dose on the health of the markets. Five intra-day ideas, unless the markets are really choppy coupled with a brief on the global markets and any other cues, which could impact the market. Occasionally an
investment idea from the research team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the Daily Markets Strategy, the clients even get research reports of India Infoline research team on a priority basis. The India Infoline Weekly Newsletter is a flashback for the week gone by. A weekly outlook coupled with the best of the web stories from India Infoline and links to important investment ideas, Leader Speak and features is delivered in the clients inbox every Friday evening. India Infoline distinguished its business through the interplay of knowledge and technology: COMPLETE SOLUTION The Company provides a complete - advice to execution solution facilitated by information and advice on likely commodity trends in the Indian and international environment. TECHNOLOGY The Company has extended the trading terminal to the investors home/workplace reinforced with real-time commodity information and ledger position. RATES The Company harnessed technology to offer services at among the lowest rates in the business. Membership: The Company widened client reach in trading on the domestic and international exchanges. Key Features: Enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges Recently acquired membership of the DGCX Multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities
Extended commodity trading to retail investors, among the few Indian financial intermediaries to do so Online business at 80% of revenues dominates commodities trading revenues Provides regular commodity updates pertaining to the Indian and international environment COMPANY MILESTONES:1995 Incorporated as an equity research and consulting firm with a client base that included leading FIIs, banks, consulting firms and corporates. 1999
Restructured
the
business
model
to
embrace
the
internet;
launched
archives.indiainfoline.com mobilised capital from reputed private equity investors. 2000 Commenced the distribution of personal financial products; launched online equity trading; entered life insurance distribution as a corporate agent. Acknowledged by Forbes as Best of the Web and ...must read for investors. 2004 Acquired commodities broking license; launched Portfolio Management Service. 2005 Listed on the Indian stock markets. 2006 Acquired membership of DGCX; launched investment banking services. 2007 Launched a proprietary trading platform; inducted an institutional equities team; formed a Singapore subsidiary; raised over USD 300 mn in the group; launched consumer finance business under the Moneyline brand.
2008 Launched wealth management services under the IIFL Wealth brand; set up India Infoline Private Equity fund; received the Insurance broking license from IRDA; received the venture capital license; received inprinciple approval to sponsor a mutual fund; received Best broker- India award from FinanceAsia; Most Improved Brokerage- India award from AsiamoneyI. 2009 Received registration for a housing finance company from the National Housing Bank; received Fastest growing Equity Broking House - Large firms in India byDun &Bradstreet.
2010 Received in principle approval for membership of the Singapore stock exchange received membership of the Colombo stock exchange. 2011 IIFL is received Indias best equity broker Awarded at Bloomberg UTVs financial leadership awards 2011. The award was presented by the Honble finance minister of India, shri Pranabmukherjee on Saturday, March 26,2011
Data for OPTSTK-RPOWER CE from 01-04-2011 to 28-04-2011
Date 1-Apr-11 4-Apr-11 5-Apr-11 6-Apr-11 7-Apr-11 8-Apr-11 11-Apr-11 13-Apr-11 15-Apr-11 18-Apr-11 19-Apr-11 20-Apr-11 21-Apr-11 25-Apr-11 26-Apr-11 27-Apr-11 28-Apr-11
Expiry 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11
Strike Price 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120
Open 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11.45
High 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11.45
Low 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10.05
Close 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 9.6 10.05
LTP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10.05
Settle Price 18.65 18.75 18.15 20.3 19.3 16 14.55 16.35 14.95 11.8 12.3 12.45 14 12.6 12.45 11.55 10.05
Underlying Value 133.3 134 133.75 136.55 135.65 131.45 130.1 132.7 131.3 127.2 128.25 128.8 130.95 129.8 129.95 129.1 128.75
Strike Price 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130
Open 0 0 0 0 0 0 0 0 7.65 5.95 5.7 6 6 5.7 5.3 5 4.5
High 0 0 0 0 0 0 0 0 7.65 5.95 5.9 6 6.8 6.1 5.3 5.5 4.65
Low 0 0 0 0 0 0 0 0 7.65 5.1 4.9 4.1 6 5.65 4.5 4.3 3.6
Close 6.55 6.55 6.55 6.55 6.55 6.55 6.55 6.55 7.65 5.1 4.9 5.15 6.65 5.75 5.25 4.65 4.1
LTP 0 0 0 0 0 0 0 0 7.65 5.1 4.9 5.6 6.5 5.75 5.25 4.45 3.9
Settle Price 12.4 12.3 11.65 13.35 12.4 9.9 8.6 9.85 7.65 5.1 4.9 5.15 6.65 5.75 5.25 4.65 4.1
Strike Price 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140
Open 0 0 0 0 0 4 0 0 4 4 2.5 2.95 2.5 2.45 1.7 1.1 1.9
High 0 0 0 0 0 4 0 0 4 4 2.5 2.95 2.7 2.45 2 2 1.9
Low 0 0 0 0 0 4 0 0 4 2.25 2.5 2.5 2.5 2 1.55 1.1 1.4
Close 4.4 4.4 4.4 4.4 4.4 4 4 4 4 2.35 2.5 2.5 2.65 2 1.75 1.85 1.6
LTP 0 0 0 0 0 4 4 4 4 2.25 2.5 2.5 2.6 2 1.7 1.85 1.7
Settle Price 7.8 7.5 6.95 8.15 7.35 4 4.6 5.35 4 2.35 2.5 2.5 2.65 2 1.75 1.85 1.6
Strike Price 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Open 0 0 0 3 3 2.05 0 0 0 0 0 0 1.45 0 0 0.8 0.6
High 0 0 0 3.6 3 2.05 0 0 0 0 0 0 1.5 0 0 0.8 0.65
Low 0 0 0 3 3 2 0 0 0 0 0 0 1.45 0 0 0.3 0.6
Close 2.9 2.9 2.9 3.6 3 2 2 2 2 2 2 2 1.5 1.5 1.5 0.7 0.65
LTP 0 0 0 3.6 3 2 2 2 2 2 2 2 1.5 1.5 1.5 0.7 0.65
Settle Price 4.6 4.35 3.9 3.6 3 2 2.25 2.65 2.05 1.3 1.3 1.2 1.5 0.9 0.8 0.7 0.65
Date 29-Apr-11 2-May-11 3-May-11 4-May-11 5-May-11 6-May-11 9-May-11 10-May-11 11-May-11 12-May-11 13-May-11 16-May-11 17-May-11 18-May-11 19-May-11 20-May-11 23-May-11 24-May-11 25-May-11 26-May-11
Expiry 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11
Strike Price 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120
Open 11.7 9.5 6.35 6.4 5.5 3.95 3.1 2.5 2.1 1.8 1.85 1.45 1 0.6 0.5 0.35 0.3 0.15 0.15 0.1
High 11.7 9.5 6.35 7.9 5.5 4.1 3.1 3.4 2.45 2.5 2.5 1.5 1.05 0.6 0.5 0.85 0.3 0.2 0.15 0.15
Low 11.7 9.25 5.75 5.55 3.35 2.6 2.6 1.95 1.9 1.7 1.6 0.85 0.6 0.3 0.3 0.2 0.1 0.1 0.1 0.05
Close 11.7 9.25 6.2 7.9 3.6 3.5 2.7 2.05 2.1 1.85 1.75 1 0.7 0.4 0.4 0.4 0.15 0.15 0.15 0.05
LTP 11.7 9.25 5.75 7.9 3.35 3.4 2.6 2.05 1.95 1.85 1.9 0.9 0.65 0.4 0.4 0.3 0.15 0.2 0.1 0.05
Settle Price 11.7 9.25 6.2 7.9 3.6 3.5 2.7 2.05 2.1 1.85 1.75 1 0.7 0.4 0.4 0.4 0.15 0.15 0.15 0
Underlying Value 130.7 127.55 123.55 124.25 118.55 117.6 116.65 115.65 116.2 115.25 115.75 113.85 112.65 110.7 109.1 112.7 109.8 111 110.25 110.1
Strike Price 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130
Open 4.4 5 3.1 2 1.9 1.1 1 0.9 0.75 0.6 0.6 0.45 0.2 0.25 0.15 0.1 0.05 0.05 0.05 0.05
High 5 5 3.3 2.45 1.9 1.15 1 1 0.95 0.6 0.65 0.45 0.25 0.25 0.2 0.2 0.1 0.05 0.1 0.05
Low 3.8 3.15 1.95 1.35 0.95 0.55 0.7 0.65 0.55 0.4 0.4 0.25 0.2 0.15 0.1 0.1 0.05 0.05 0.05 0.05
Close 4.7 3.3 2.1 1.85 1.05 1.05 0.85 0.65 0.7 0.4 0.45 0.3 0.25 0.15 0.2 0.15 0.1 0.05 0.05 0.05
LTP 4.7 3.2 1.95 1.8 1 1 0.85 0.65 0.7 0.4 0.4 0.3 0.25 0.15 0.15 0.15 0.1 0.05 0.05 0.05
Settle Price 4.7 3.3 2.1 1.85 1.05 1.05 0.85 0.65 0.7 0.4 0.45 0.3 0.25 0.15 0.2 0.15 0.1 0.05 0.05 0
Date
Expiry

29-Apr-11 2-May-11 Date 3-May-11 29-Apr-11 4-May-11 2-May-11 5-May-11 3-May-11 6-May-11 4-May-11 9-May-11 5-May-11 10-May-11 6-May-11 11-May-11 9-May-11 12-May-11 10-May-11 13-May-11 11-May-11 16-May-11 12-May-11 17-May-11 13-May-11 18-May-11 16-May-11 19-May-11 17-May-11 20-May-11 18-May-11 23-May-11 19-May-11 24-May-11 20-May-11 25-May-11 23-May-11 26-May-11 24-May-11 25-May-11 26-May-11 26-May-11 26-May-11 Expiry 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 26-May-11 140 1.5 Strike Price 140 Open 1.75 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 140 150 150 150 0.4 1 0.250.6 0.55 0.35 0.35 0.1 0.10.4 00.3 00.3 0.050.2 0.25 0 0.050.1 0.15 0.1 00.1 0.050.1 0.05 0.1 0.05 0 0.05 0 0 0 0 0 0 0 2 High 1.75 0.4 1 0.65 0.25 0.55 0.35 0.150.5 0.10.4 00.4 0.35 0 0.050.2 0.25 0 0.15 0.05 0.15 0.1 00.1 0.050.1 0.05 0.1 0.05 0 0.05 0 0 0 0 0 0 0 1.2 Low 0.95 Close 0.350.5 0.45 0.2 0.25 0.35 0.10.3 0.10.3 0.25 0 0.25 0 0.050.2 0.15 0 0.050.1 0.050.1 0.05 0 0.050.1 0.05 0.1 0.05 0 0.05 0 0 0 0 0 0 0 1.7 1 1.55
Strike Price
Open
High
Low
Close
LTP
Settle Price
Underlying Value
Settle LTP 0.95 Price 0.40.5 0.55 0.2 0.350.3 0.150.4 0.35 0.1 0.25 0.1 0.25 0.1 0.050.2 0.050.2 0.15 0.05 0.050.1 0.05 0.05 0.050.1 0.05 0.1 0.05 0.1 0.05 0.1 0.05 0.1 0.05 0.1 0.1 0.1
1.7 130.7 Underlying 1 Value 127.55 123.55 130.7 124.25 127.55 118.55 123.55 117.6 124.25 116.65 118.55 115.65 117.6 116.2 116.65 115.25 115.65 115.75 116.2 113.85 115.25 112.65 115.75 110.7 113.85 109.1 112.65 112.7 110.7 109.8 109.1 111 112.7 110.25 109.8 110.1 111 110.25 110.1
0.40.6 0.55 0.2 0.35 0.35 0.45 0.15 0.35 0.1 0.25 0.1 0.25 0.1 0.050.2 0.050.2 0.15 0.05 0.050.1 0.05 0.05 0.050.1 0.05 0.1 0.05 0.1 0.05 0.1 0.05 0.1 0.05 0.1 0.1 0.1
0.40.6 0.55 0.2 0.35 0.35 0.45 0.15 0.35 0.1 0.25 0.05 0.25 0.05 0.050.2 00.2 0.15 0.05 0.050.1 0.05 0 0.050.1 0.05 0.1 0.05 0 0.05 0 0 0 0 0 0 0
Pay of profile of buyers of Call option

Strike price= 120 Expiry period = April Premium = 10.05
Pay-off profile of buyers of call option of Rpower is shown in the fig.1
Profit
120 130.5 .
BEP 0 RPower 10.5
Loss Figure.1
If the spot price is more than the strike price (i.e.120) then the investor minimizes his losses. When the spot price reaches to 130.05(120+10.5) he makes no profit no loss. When the price further increases, He makes profit accordingly. Hence, the profits of buyers call option are unlimited and losses are limited to the premium paid.
Pay off profile of writer of call option

Strike price= 120 Expiry period = April Premium = 10.05
Pay-off profile of writer of call option of Rpower is shown in the fig.2
Profit
10.5
0 130.05
120 . RPower
Loss
Figure.2
If the spot price turns out to be 130.05 or more, the write of call option gets a loss that increases with the relative increase in the market price. At a share of 130.05, the profit exactly affects the premium received. Hence rs 130.5 is the break even point at which writer of call option makes no profit no loss. Even the market price goes beyond the level of 130.5 the profit of the writer of call option is limited to the premium that he received. Hence, the losses of the writer of call option are unlimited and profits are limited to the premium he paid
Data for OPTSTK-RPOWER PE from 01-04-2011 to 28-04-2011
Strike Price 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120
Open 0 0 0 0 0 0 0 0 0 0 0 2 2.1 1.25 2 1.7 1.55
High 0 0 0 0 0 0 0 0 0 0 0 2.8 2.1 1.25 2 1.7 1.6
Low 0 0 0 0 0 0 0 0 0 0 0 2 1.75 1.25 2 1.5 1.25
Close 15.9 15.9 15.9 15.9 15.9 15.9 15.9 15.9 15.9 15.9 15.9 2.8 1.75 1.25 2 1.65 1.45
LTP 0 0 0 0 0 0 0 0 0 0 0 2.8 1.75 1.25 2 1.65 1.4
Settle Price 3.55 3 2.85 2.25 2.2 3.15 3.15 2.4 2.45 3.5 2.95 2.8 1.75 1.25 2 1.65 1.45
Strike Price 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130
Open 0 0 0 0 0 0 0 0 0 4 6.5 4 4.5 4.5 4.8 4 4.25
High 0 0 0 0 0 0 0 0 0 6 6.5 5.8 4.75 4.5 4.95 5.05 5
Low 0 0 0 0 0 0 0 0 0 4 6.35 4 4 4.5 4.8 3.9 2
Close 22.6 22.6 22.6 22.6 22.6 22.6 22.6 22.6 22.6 6 6.5 5.8 4 4.5 4.95 5.05 3.75
LTP 0 0 0 0 0 0 0 0 0 6 6.5 5.8 4 4.5 4.95 5.05 2
Settle Price 7.15 6.4 6.25 5.15 5.15 6.9 7.05 5.8 6.05 6 6.5 5.8 4 4.5 4.95 5.05 3.75
Strike Price 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140
Open 0 0 0 0 0 10 0 0 0 0 0 0 0 10 12.3 0 0
High 0 0 0 0 0 10 0 0 0 0 0 0 0 10 12.3 0 0
Low 0 0 0 0 0 10 0 0 0 0 0 0 0 10 12 0 0
Close 30.2 30.2 30.2 30.2 30.2 10 10 10 10 10 10 10 10 10 12.05 12.05 12.05
LTP 0 0 0 0 0 10 10 10 10 10 10 10 10 10 12.05 12.05 12.05
Settle Price 12.35 11.5 11.4 9.85 10 10 12.95 11.2 11.75 14.55 13.55 12.95 11.35 10 12.05 11.95 12.05
Strike Price 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Open 0 0 0 3 3 2.05 0 0 0 0 0 0 1.45 0 0 0.8 0.6
High 0 0 0 3.6 3 2.05 0 0 0 0 0 0 1.5 0 0 0.8 0.65
Low 0 0 0 3 3 2 0 0 0 0 0 0 1.45 0 0 0.3 0.6
Close 2.9 2.9 2.9 3.6 3 2 2 2 2 2 2 2 1.5 1.5 1.5 0.7 0.65
LTP 0 0 0 3.6 3 2 2 2 2 2 2 2 1.5 1.5 1.5 0.7 0.65
Settle Price 4.6 4.35 3.9 3.6 3 2 2.25 2.65 2.05 1.3 1.3 1.2 1.5 0.9 0.8 0.7 0.65
Strike Price 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120
Open 1.25 0.8 1.65 2.4 1.7 3.5 5.35 4.6 5 5.55 4.5 5.3 6.2 7.35 8.9 7.2 7.9 10 9.9 9.25
High 1.5 1.5 2.6 2.8 4.9 6.55 5.5 5.9 5.35 6 5.3 6.95 7.5 9.5 11.5 7.35 10.5 10 9.9 10
Low 1.15 0.8 1.45 1.5 1.7 3.5 5.2 3.95 4.85 4.9 4 5.3 6.2 7.35 8.9 7 7.9 10 9.9 9.25
Close 1.2 1.5 2.25 2.2 4.65 5.25 5.35 5.8 5.15 6 5.3 6.95 7.45 9.1 10.25 7.35 10.35 10 9.9 10
LTP 1.15 1.5 2.6 2.1 4.55 5.25 5.5 5.8 5.15 6 5.3 6.95 7.5 9.1 10 7.35 10.35 10 9.9 9.9
Settle Price 1.2 1.5 2.25 2.2 4.65 5.25 5.35 5.8 5.15 6 5.3 6.95 7.45 9.1 10.25 7.35 10.35 10 9.9 0
Strike Price 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130
Open 3.5 1.1 4.85 7.65 8.5 11 0 13.5 0 0 13.9 0 0 0 20.25 0 20 0 19 19.5
High 4.5 5.4 7.95 8.5 11.6 13.9 0 13.5 0 0 14.05 0 0 0 20.25 0 20 0 19 19.75
Low 3.25 1.1 4.85 7.5 8 11 0 13.5 0 0 13 0 0 0 20.25 0 20 0 19 19.5
Close 3.6 5.1 7.95 7.5 11.6 13.5 13.5 13.5 13.5 13.5 13 13 13 13 20.25 20.25 20 20 19 19.75
LTP 3.9 5.2 7.95 7.5 11.6 13.5 13.5 13.5 13.5 13.5 13 13 13 13 20.25 20.25 20 20 19 19.75
Settle Price 3.6 5.1 7.95 7.5 11.6 13.5 13.45 13.5 13.7 14.55 13 15.9 17.1 19.05 20.25 17.15 20 18.95 19 0
Strike Price 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140
Open 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
High 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Low 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Close 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05
LTP 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05 12.05
Settle Price 10.5 12.85 16.35 15.65 21.1 21.95 22.9 23.9 23.35 24.3 23.85 25.85 27.05 29.05 30.7 27.1 30.1 28.95 29.75 0
Strike Price 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150
Open 0 0 0 0 0 0 0 31.05 0 0 0 0 0 0 0 0 0 0 0 0
High 0 0 0 0 0 0 0 31.05 0 0 0 0 0 0 0 0 0 0 0 0
Low 0 0 0 0 0 0 0 31.05 0 0 0 0 0 0 0 0 0 0 0 0
Close 20 20 20 20 20 20 20 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05
LTP 20 20 20 20 20 20 20 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05 31.05
Settle Price 18.95 21.9 25.8 25.1 30.8 31.75 32.8 31.05 33.3 34.25 33.8 35.8 37.05 39.05 40.65 37.1 40.1 38.95 39.75 0
Pay of profile of buyers of put option

Strike price= 120 Expiry period = May Premium = 1.85
Pay-off profile of buyers of put option of Rpower is shown in the fig.3
Profit
0 121.85 1.85 . RPower
Loss
Figure.3
Pay off profile of buyers of put option is shown figure-3. When the market price is higher than the strike price 120, the put option holder incurs a consistent loss to the extent of premium paid on the contract, which(1.85).
Pay off profile of writer of put option

Strike price= 120 Expiry period = May Premium = 1.85
Pay of profile of writer of put option of Rpower is shown in fig.4
Profit
1.85
0 RPower
120
121.85
Loss
Figure.4
Pay-off profile for put option is shown figure-4. If the spot price is more than the strike price 120, then the investor makes profits otherwise makes losses. His profits are limited to the premium received however his losses are potentially unlimited.
FINDINGS
At present scenario the derivatives are increased to a great position. Approximately its daily turnover reaches to the equal stage of cash market. The daily turnover of the NSE in derivatives is 7.2lakhs
In the above analysis, we can observe that the Rpower scrip is having normal volatility market situations, so the option holders & option writers will enjoy more profits in right time. In derivatives market there are 187scripts are available in futures & options segment In cash market the profit/loss of the investor may be unlimited in long period, but in the option market, the investor enjoys unlimited profits and minimizes the loses in short term INDIAINFOLINE gave good recommendations to his clients. Stock market is based on foreign market buyers and sellers, company financial position, interest rates in Rpower scrip put option holders and writers get more profits compare to call option.
SUGGESTIONS
The derivatives market is newly started in India compare to ASIAN markets, and it is not known by everyone. So SEBI should take necessary actions to create awareness among investors.
In order to create the derivatives in India, the SEBI should revise some of their regulation like contract size. Participation of foreign investors investment in the derivatives market contract size should be minimized, because small investor cannot afford huge premiums.
In bearish market, the investor is suggested to opt for put options in order to minimize his losses.
So the investor should opt for put option of Rpower in order to minimize his losses. In bullish market, the investor is suggested to opt for call options in order to maximize the profits.
CONCLUSION
The derivatives are mainly used for hedging purpose. In cash market investor has to pay the total money, in option market investor pay some percentage of total money. In derivatives market the total profit or loss position of options purely depends on market fluentions and customer mindset and his experience.
BIBLIOGRAPHY
BOOKS REFERED THE ECONOMIC TIMES_BUSINESS NEWS PAPER. DERIVATIVES CORE MODULE WORKBOOK. NCFM(NSES CERTIFICATION IN FINANCIAL MARKETS). Securities Analysis and portfolio Management - R.Madhumati
TITLE Securities Analysis and Portfolio Management
AUTHOR
PUBLICATION
R.Madhumati Schaums
Pearson Education TATA McGraw-Hill
Investments International Financial Management
P.G.Apte
TATA McGraw-Hil
Financial Institutions and Markets L.M.Bhole TATA McGraw-Hill
Options, Futures and Other Derivatives John C.hull Pearson Education
WEBSITES REFERED

WWW.nseindia.com www.indiainfoline.com www.5paisa.com www.derivativesindia.com www.sify.com www.economictimes.com PROFIT/LOSS POSITION OF CALL OPTION BUYER/WRITER(APRIL-11) spotprice Strikeprice Premium Whether Buyers exercise gain/loss 128.75 132.7 136.55 120 130 140 10.05 No 6.55 No 9.6 No -37600 -18500 -12300
Writer,s gain/loss 37600 18500 12300
130.1
150
2 Yes
35800
-35800
PROFIT/LOSS POSITION OF CALL OPTION BUYER/WRITER(MAY-2011) spotprice Strikeprice Premium Whether Buyers Writers exercise gain/loss gain/loss 117.6 120 1.85 No -2200 2200 127.55 130.7 127.55 130 140 150 0.45 No 0.25 Yes 0.2 Yes -1700 15200 44500 1700 -15200 -44500
PROFIT/LOSS POSITION OF PUT OPTION BUYER/WRITER(MAY-2011) spotprice Strikeprice premium Whether Buyers Writers exercise gain/loss gain/loss 117.7 120 5.25 No -5900 5900 127.55 130 5.1 No -6300 6300 130.7 140 12.05 No -5500 5500 127.55 150 20 Yes 4900 -4900
PROFIT/LOSS POSITION OF PUT OPTION BUYER/WRTER(April2011) spotprice Strikeprice premium Whether Buyers Writers exercise gain/loss gain/loss 128.8 120 2.8 No -23200 23200 129.1 130 5.05 No -8300 8300
128.8 127.2
140 150
10 Yes 38.45 No
2400 -31300
-2400 31300
Interpretation Spot price 117.6, 127.55, 130.7, 127.55 are taken from the month of may 2011 The call option 120&130 are out-of-the money The call option 140,150 are In-the-money Profit of the holder= (strikeprice-spotprice)-premiumpaid*lotsize(2000) If it is profit for writer then obviously it will be loss for the holder
Put option holders whose strike price is lessthan the current market price. They lost their premiums which are paid initially to the option writer The put option holder get more profits buyers at 140,150 strike price and writers get profits on 120&130 strike price.
Interpretation Spot price 117.7, 127.55, 130.7,127.55 are taken from the month of may2011 The put option 120,130,140 are out-of-the-money
The put option 150were in-the-money Profit of the holder=(Strikeprice-spotprice)-premium paid*lotsize(2000) If it is profit for writer then obviously it will be loss for the holder Put option holders whose strike price less than the current market price. The lot their premiums which are paid initially to the opption writer. The put option holder get more profits on buyer at 150 strikeprice and writers get profits 120,130,140 strikeprice.
Interpretation Spotprice 128.8, 129.1,128.8,127.2 are taken from the month of April2011
The put option 120,130,150 are out of the money The put option 140 is in-the-money Profit of the holder=(strikeprice-spotprice)-premiumprice*lotsize(2000) If it is profit for writer then obviouly it will be loss for the holder Put option holder whose strike price is less than the current market price. They lot their premiums which are paid initially to the option writer The put option holder get more profits on buyers 140 strike price and writers get profits on 120,130,150strikeprice
Interpretation Spot price 128.75, 132.7, 136.55 &130.1 are taken from the month of April. The call option 120,130, is out-of-the money The call option 140,150 is were In-the-money Profit of the holder(strike-spot price)-premiumpaid*lotsize(2000) The call option holder get more profits on buyer 150 strike price and writers get profits on 120,130,140 strike prices.

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DERIVATIVES

flows between the parties in the same currency.

Stock options are options on individual stocks. Options

The buyer of an option is the one who by paying the

buy an asset by a certain date for a certain price.

an asset by a certain date for a certain price.

to the option seller. It is also referred to as the option premium.

price or the exercise price.

time up to the expiration date. Most exchange-traded options are American.

In-the-money option: An in-the-money (ITM) option is an option that would

At-the-money option: An at-the-money (ATM) option is an option that would

Out-of-the-money option: An out-of-the-money (OTM) option is an option that

How much is enough?

STOCK EXCHANGES IN INDIA

Equities, Mutual Funds, Life Insurance

Wealth Management, Advisory, Financing

Investment Banking, Corporate debt

Wealth Advisory corporate Services and

institutional Portfolio Management Services.

infstitutional the Cash segment of the BSE.

India Infoline Group

India Infoline Ltd

India Infoline commoditie

IIFL (Asia) pvt Ltd

India Infoline Media Research

India Infoline Marketing

Money line credit Ltd

India Infoline housing Ltd

India Infoline Distribution co Ltd

India Infoline Insurance

India Infoline Insurance

India Infoline Commodities Limited

Data for OPTSTK-RPOWER CE from 01-04-2011 to 28-04-2011

Data for OPTSTK-RPOWER CE from 01-04-2011 to 28-04-2011

Open 0 0 0 0 0 0 0 0 7.65 5.95 5.7 6 6 5.7 5.3 5 4.5

High 0 0 0 0 0 0 0 0 7.65 5.95 5.9 6 6.8 6.1 5.3 5.5 4.65

Low 0 0 0 0 0 0 0 0 7.65 5.1 4.9 4.1 6 5.65 4.5 4.3 3.6

Data for OPTSTK-RPOWER CE from 01-04-2011 to 28-04-2011

Open 0 0 0 0 0 4 0 0 4 4 2.5 2.95 2.5 2.45 1.7 1.1 1.9

High 0 0 0 0 0 4 0 0 4 4 2.5 2.95 2.7 2.45 2 2 1.9

Low 0 0 0 0 0 4 0 0 4 2.25 2.5 2.5 2.5 2 1.55 1.1 1.4

LTP 0 0 0 0 0 4 4 4 4 2.25 2.5 2.5 2.6 2 1.7 1.85 1.7

Data for OPTSTK-RPOWER CE from 01-04-2011 to 28-04-2011

Open 0 0 0 3 3 2.05 0 0 0 0 0 0 1.45 0 0 0.8 0.6

High 0 0 0 3.6 3 2.05 0 0 0 0 0 0 1.5 0 0 0.8 0.65

Low 0 0 0 3 3 2 0 0 0 0 0 0 1.45 0 0 0.3 0.6

LTP 0 0 0 3.6 3 2 2 2 2 2 2 2 1.5 1.5 1.5 0.7 0.65

Data for OPTSTK-RPOWER CE from 29-04-2011 to 26-05-2011

Data for OPTSTK-RPOWER CE from 29-04-2011 to 26-05-2011

Data for OPTSTK-RPOWER CE from 29-04-2011 to 26-05-2011

Data for OPTSTK-RPOWER CE from 29-04-2011 to 26-05-2011

Pay of profile of buyers of Call option

BEP 0 RPower 10.5

Pay off profile of writer of call option

Data for OPTSTK-RPOWER PE from 01-04-2011 to 28-04-2011

Open 0 0 0 0 0 0 0 0 0 0 0 2 2.1 1.25 2 1.7 1.55

High 0 0 0 0 0 0 0 0 0 0 0 2.8 2.1 1.25 2 1.7 1.6

Low 0 0 0 0 0 0 0 0 0 0 0 2 1.75 1.25 2 1.5 1.25

LTP 0 0 0 0 0 0 0 0 0 0 0 2.8 1.75 1.25 2 1.65 1.4

Data for OPTSTK-RPOWER PE from 01-04-2011 to 28-04-2011

Open 0 0 0 0 0 0 0 0 0 4 6.5 4 4.5 4.5 4.8 4 4.25

High 0 0 0 0 0 0 0 0 0 6 6.5 5.8 4.75 4.5 4.95 5.05 5