DERIVATIVE MARKETS o What are derivatives o Types of derivatives I) types: options, future, forward ( define diagrams, and strategy). o Focus on buy-write.
Critical Analysis: 1) °Overall picture- increase in uncertainty, need for derivatives to hedge risk – relate to risk side – diamond risk? °Specific sectors – positive affected, negatively affected – relate to return side. °Price expected to rise – call options °Price expecres to fall – put options ‘Mixed reaction – mixing puts and calls.