Professional Documents
Culture Documents
CHOOSE TO KNOW
SUBMITTED FOR MBA PROGRAM UNDER THE SUPERVISION OF
(DR. VIQAR ALI BAIG)
TABLE OF CONTENT
(1) INTRODUCTIN OF CURRENCY DERIVATIVES
(e) Limitation
(6) Conclusion
(7) Refrence
INTRODUCTION
Each country has its own currency through which both
national and international transaction are
performed.All the international business transaction involve
an exchange of one currency for another.
For example
If any Indian firm borrow funds from international
financial market in USdollars for short or long term then at
maturity The would be refunded in particular agreed
currency along with accrued interest on borrowed money , it
means that the borrowed foreign currency brought in the
country will be converted into Indian currency , and when
borrowed fund are paid to the lender then the home
currency will be converted into foreign lenders currency.
Thus the currency units of a country involve an exchange
of one currency for another. The price of one currency in
terms of other currency is knows as exchange rate. The
foreign market of a country provide the mechanism of
exchanging different currencies with one and another., and
thus , facilitating transfer of purchasing power from one
country to another . with the multiple growths of
international trade and finance all over the world , trading in
foreign currencies has grown tremendously over the several
past decade .
RESERCH METHODOLOGY
TYPE OF RESEARCH
LIMITATION
Options
FORWARD
FUTURE
OPTION
For example
If one US doller is worth of RS 45 indian rupees than it
implies that 45 indian rupees will by one doller of USA
doller , or that one rupee is worth of 0.022 USA doller.
Which is simply reciprocal of the former doller exchange
rate.
Exchange rate
Direct
Indirect
The number of unit of domestic
The number of unit of foreign
Currency stated against one unit
Initially NSE had the permission but now BSE and MCX
has also started currecy future , it is show that how currency
future cover ground in the compare of other derivatives
instrument . not only big businessmen and exporter importer
use this but individual who are interested and having
knowledge forex market they can also invest in currency
future.
REFERENCE
Website
www.sebi.gov.in
www.rbi.org.in
www.bseindia.com
www.nseindia.com
www.economywatch.com