...SECOND CITY OPTIONS: A Case Study on Index Options[1] Don M. Chance and Michael L. Hemler (Version: August 30, 2011) Second City Options (SCO) is a small firm that specializes in option trading. Employing 35 people, SCO is located on LaSalle Street in the Chicago financial district. It is a member firm of the Chicago Board Options Exchange (CBOE), where it trades options on stocks and stock indices. It is also a member firm of the Chicago Mercantile Exchange Group (CME Group), where it trades options on futures and the underlying futures contracts. SCO trades for itself and a number of corporate and individual clients. In addition, it provides general advice to other clients who trade for themselves. SCO was founded in 1975, two years after the CBOE opened. It was very successful for its first 25 years, but its profits have declined steadily since 2000. SCO's founder and principal owner, Joseph Jensen, is 67 years old and has been a life-long student of the stock market. Jensen has traded since he was a teenager. By the age of 30 he was a millionaire and an acknowledged expert on analyzing market trends. Throughout his career Jensen has relied primarily on technical analysis, the evaluation of trends in past market data such as prices and volumes. He has consistently devised option strategies to take advantage of his stock market forecasts. Over the last several years, however, his techniques have grown less profitable. Jensen attributes his declining success to the growing...
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...1. RESEARCH METHODOLOGY 1. Objectives of the study:- ➢ To study Mutual Fund Industry with specific reference to equity growth oriented schemes. ➢ To compare the performance of 5 open ended equity mutual fund schemes with various financial parameters like Treynor, Jenson and Sharpe Model. ➢ To assess the above-mentioned schemes in-depth and suggest the investors for the same. ➢ To assign ranks to the selected mutual fund schemes and suggest suitable scheme to the investors on the basis of risk and return. 2. Scope of the Study:- ➢ In this study we have selected last 5 years data for 5 equity oriented mutual fund schemes and their performance results. ➢ Due to time constrain, we took only five equity schemes and suggest the desired portfolio for the investors only on the base of above schemes only. ➢ We have taken BSE 100 as the benchmark index for calculation of market return though different funds have compared themselves on different indices. This is to make our study more valid and it is easy to compare performance on one benchmark return basis. ➢ We have considered the rate of interest of National Savings Certificates as the Risk free rate of return. 3. Criteria & Tools for Evaluation:- This study only includes five open ended equity funds during the last 5 years. Moreover the result of the study is only based on following measures. ➢ Treynor Measure ➢ Sharpe Measure ➢ Jenson Model 1.4 Research design:- ...
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...A PROJECT REPORT ON “Analysis of derivative segment (Future & Options Market) of capital market” SUBMITTED BY: RAVINDER SINGH NEGI NRS/011304 In the partial fulfillment of the requirement as per THE INSTITUTE OF COST AND WORKS ACCOUTANT OF INDIA Institute of Cost and Works accountant of India Delhi Office 3, Institutional Area Lodhi Road, New Delhi - 110003 Phones: 011-24622156, 24521492 Fax: 011-43583642, 24622156, 24618645 DECLARATION I hereby declare that the Project report has been prepared by me during the year 2011. In partial fulfillment of the requirement for the award of the degree of Institute of Cost and Works Accountant of India (NIRC). Ravinder Singh Negi Place:--New Delhi Date:--...
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...WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH SPECIALISATION PROJECT ON ANALYSIS OF INVESTMENT OPTIONS BY MAHIMA SUHALKA PGDM RM 2014 – 2016 (FINANACE SPECIALISATION) ROLL NO. 48 PROJECT FACULTY GUIDE PROF. PRITI SAMANT PROJECT COMPLETION CERTIFICATE This is to certify that project titled “Analysis of Investment Options” is successfully done by Ms. Mahima Suhalka in partial fulfilment of her two years full time course ‘Post Graduation Diploma in Management’ recognized by AICTE through the Prin. L. N. Welingkar Institute of Management Development & Research, Matunga, Mumbai. This project has been completed under my guidance. ___________________________ (Signature of Faculty Guide) Name: ______________________ Date: ______________________ Acknowledgement I take this opportunity to express my sincere gratitude to everyone who supported me throughout the course of this PGDM project. I am thankful for their aspiring guidance, invaluably constructive criticism and honest advice during the project work. I express my warm thanks to Prof. Priti Samant, my project guide who provided me with critical insights on this project and helped me make this a success. I would also like to acknowledge the help of all my friends and respondents who enabled me to conduct this research project. Thank You All!! Table of Contents Chapter 1 Introduction ...
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...to borrowers in foreign countries, two risks need to be considered. First, the credit risk of the project needs to be examined to determine the ability of the borrower to repay the money. This analysis is based strictly on the economic viability of the project and is similar in all countries. Second, unlike domestic loans, creditors are exposed to sovereign risk. Sovereign risk is defined as the uncertainty associated with the likelihood that the host government may not make foreign exchange available to the borrowing firm to fulfil its payment obligations. Thus, even though the borrowing firm has the resources to repay, it may not be able to do so because of actions beyond its control. Thus, creditors need to account for sovereign risk in their decision process when choosing to invest abroad. 2. What is the difference between debt rescheduling and debt repudiation? Loan repudiation refers to a situation of outright default where the borrower refuses to make any further payments of interest and principal. In contrast, loan rescheduling refers to temporary postponement of payments during which time new terms and conditions are agreed upon between the borrower and lenders. In most cases, these new terms are structured to make it easier for the borrower to repay. 3. Identify and explain at least four reasons why rescheduling debt in the form of loans is easier than debt in the form of bonds. The reasons why it is easier to reschedule debt in the form of bank loans than...
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...prices to vary with market conditions. Price fluctuations make it hard for businesses to estimate their future production costs and revenues. 2 Derivative securities provide them a valuable set of tools for managing this risk. This article describes the evolution of Indian derivatives markets, the popular derivatives instruments, and the main users of derivatives in India. I conclude by assessing the outlook for Indian derivatives markets in the near and medium term. 2. Definition and Uses of Derivatives A derivative security is a financial contract whose value is derived from the value of something else, such as a stock price, a commodity price, an exchange rate, an interest rate, or even an index of prices. In the Appendix, I describe some simple types of derivatives: forwards, futures, options and swaps. Derivatives may be traded for a variety of reasons. A derivative enables a trader to hedge some...
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...BASIC PRINCIPLES OF TRADING AND HEDGING AND INFORMATION ON INDEX FUTURES ( WITH REFERENCE TO THE BSE MODEL) Group members : Nishma Mehta- 68 Navti Narang- 72 Jaikrishna Patel- 80 Miloni Shah- 100 Nidhi Shah- 102 Karishma Kotian- 120 TRADING Trading Rules The Derivatives Trading at BSE takes place through a fully automated screen-based trading platform called DTSS (Derivatives Trading and Settlement System).The DTSS is designed to allow trading on a real-time basis. In addition to generating trades by matching opposite orders, the DTSS also generates various reports for the member participants. Order Matching Rules Order Matching takes place after order acceptance wherein the system searches for an opposite matching order. If a match is found, a trade is generated. The order against which the trade has been generated is removed from the system. In case the order is not exhausted further matching orders are searched for and trades generated till the order gets exhausted or no more match-able orders are found. If the order is not entirely exhausted, the system retains the order in the pending order book. Matching of the orders is in the priority of price and timestamp. A unique trade-id is generated for each trade and the entire information of the trade is sent to the relevant Members. Order Conditions The derivatives market is order driven i.e. the traders can place only orders in the system. Following are the order types allowed for the derivative products...
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...Gestão Estratégica e Comercial 2014/2015 Robin Hood Case Study 1 II. Table Index Table 1. Market Segmentation………………………………………………………………..6 Table 2. PESTL Analysis……………………………………………………………………...7,8 Table 3 Benchmarking ……………………………………………………………………...12 III. Image Index Figure 1. Porter Analysis Diagram …………………………………………………………...9 Figure 2. Porter’s generic Value Chain………………………………………………………10 Figure 3. SWOT analysis……………………………………………………………………...13 2 IV. Index 0. Executive Summary…………………………………………………………………………....4 1. Introduction……………………………………………………………………………………...5 2. Definition of the Market – Market Segment………………………………………………..5,6 2.1. Geographic segmentation…………………………………………………………….....5 2.2. Demographics………………………………………………………………………….....5 2.3. Psychographic…………………………………………………………………………….5 2.4. Behavioural………………………………………………………………………………..6 3. Analysis of the External Environment…………………………………………...…………....6 3.1. PESTL Analysis…………………………………………………………………………..7 3.2. Porter Analysis………………………………………………………………..……..…8,9 4. Analysis of the Internal Environment…………………………………………………….10,11 5.Analysis of the Competitive Position of the Organization…………………………..….11,12 5.1. Critical Success Factors………………………………………………………...….11,12 5.2. Benchmarking……………………………………………………………………….…..12 6. SWOT Analysis……………………………………………………………………...…….13,14 7. Recommendations………………………………………………………………………...
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...What are Blue Chips? Blue Chips are stocks of well-established companies with strong track records. When we refer to blue chips they are often known companies in the country. They are somewhat treated as icons in their respective industries. In terms of financial resources, blue chip companies are known to have large amount of capital. They are known to be profitable, pays regular dividends to its stock holders, and have a good rating on their debts. Image taken from oldvegaschips.com How’s the Performance of Blue Chips? Let’s take one blue chip stock for example. Jollibee Foods Corporation (JFC) has been a great performer in the Philippine Stock Market during the last decade. As you can see in the chart below, the direction of its price is generally upward. JFC is the parent of Jollibee, the country’s leading fast-food chain brand. And if you would add all Chowking, Greenwich Pizza, Red Ribbon, Mang Inasal and Burger King stores it will total to 2,510 food-chains worldwide and a total sales of 82.1 billion pesos (around 2 billion US Dollars). Generated from http://investing.businessweek.com Is it Safe to Invest in a Blue Chips Stocks? All stock market investments has no guarantee of earning you money. Stocks investment is always involved with high risks. The market can go very high but sometimes it can go crashing down. If you plan to do short-term investment only, then I might say that blue chip stocks are not really the best choice. But, is it safe to invest in blue...
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...process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors’ Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts. The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a...
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...CHAPTER - I INTRODUCTION Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions. Types of investor In continuation of the lessons I’ve learned from Rich Dad Poor Dad author, Robert Kiyosaki, I will discuss today what he called “Types of Investors.” According to him, there are two main types of investors: Average Investors and Professional Investors. Average investors - buy packaged securities such as mutual funds, treasury bills, or real-estate-investment trusts. Professional investors - are more aggressive—they create investment opportunities or get in on the ground floor of new offerings, build businesses and marketing networks, assemble groups of financiers to fund deals too large for them to undertake alone, and pick the companies with the most promise for initial public offerings of stock. INVESTMENT AVENUES IN INDIA There are a large number of investment instruments available today. To make our lives easier we would classify or group them under 4 main types of investment avenues. We shall name and briefly...
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...| | [Type the document subtitle] | | Hilton Hotel | | | | Index Hilton Hotel 2 About Hilton Worldwide 3 Mission 3 Vision 3 Objectives 4 Market Position and Services 4 SWOT Analysis of Hilton Hotels 4 Strength 5 Weakness 5 Opportunity 5 Threats 6 Challenges 6 Internal and External Environment 7 PESTLE Analysis 7 Economic Environment 8 Legal Environment 8 Technological Environment 8 Social Environment 9 Political Environment 9 Porter’s five forces model for Hotel Hilton 9 Current strategies 10 Offering Future Strategies 13 Recommendation 15 References 15 Hilton Hotel From Omaha to Rome there are about 500 Hilton Hotels located in between. Online transactions help in the development of Hilton Hotels. Among all hotels Hilton hotels are unique. In year 1919, in Cisco (Texas) Conrad Hilton bought first hotel. And this Hotel was inaugurated in year 1925 in Dallas which was named ‘Hilton’. In America during year 1943 Hilton hotels grown to first extensive hotels, this was situated for the facilities of industrial customers. Subsequently having huge development in their hotels, the owner of Hilton Hotels i.e. Conrad Hilton grown into the richest person around the whole world. Hilton hotels were operated outside America also. In Puerto Rico in year 1949 Hilton operated his 1st hotel outward of America. In year 1979 Conrad Hilton died and the whole business was owned by Barron Hilton (Hilton’s son). They opened...
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...Environment for Development Discussion Paper Series January 2014 EfD DP 14-01 A Review of Beijing’s Vehicle Lottery Short-Term Effects on Vehicle Growth, Congestion, and Fuel Consumption J un Y an g, Yi ng Li u, Pi ng Q i n, an d An tu ng A. Li u Environment for Development Centers Central America Research Program in Economics and Environment for Development in Central America Tropical Agricultural Research and Higher Education Center (CATIE) Email: centralamerica@efdinitiative.org Chile Research Nucleus on Environmental and Natural Resource Economics (NENRE) Universidad de Concepción Email: chile@efdinitiative.org China Environmental Economics Program in China (EEPC) Peking University Email: china@efdinitiative.org Ethiopia Environmental Economics Policy Forum for Ethiopia (EEPFE) Ethiopian Development Research Institute (EDRI/AAU) Email: ethiopia@efdinitiative.org Kenya Environment for Development Kenya University of Nairobi with Kenya Institute for Public Policy Research and Analysis (KIPPRA) Email: kenya@efdinitiative.org South Africa Environmental Economics Policy Research Unit (EPRU) University of Cape Town Email: southafrica@efdinitiative.org Tanzania Environment for Development Tanzania University of Dar es Salaam Email: tanzania@efdinitiative.org Sweden Environmental Economics Unit University of Gothenburg Email: info@efdinitiative.org USA (Washington, DC) Resources for the Future (RFF) Email: usa@efdintiative.org The Environment...
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...WE PROVIDE NMIMS – NARSEE MONJEE - PGDSCM, PGDMM, PGDFM, DGM, DSCM, DMM, DITM, DHRM, DFM, DBM, DBFM, ASSIGNMENT ANSWERS, ASSIGNMENT SOLUTIONS aravind.banakar@gmail.com http://www.mbacasestudyanswers.com ARAVIND - 09901366442 – 09902787224 SALES MANAGEMENT 1. Suppose you are Sales Manager (priority banking) in a Bank which deals with key account holders explain how you will? a. Recruit sales force b. Prepare the Job Description and Specification c. Design training program for them. (Marks 15) 2. Suppose you are Sales Manager in life insurance Company, managing team of fifteen sales executives. How you will use sales force automation to improve efficiency and effectiveness of sales operation? (Marks 15) Corporate Finance 1. Suppose, a prospective client who wants to invest certain amount of money comes to you but does not know anything about ‘Time Value of Money’. So, please explain to the person the concept of ‘Time Value of Money’ in detail. 2. A limited company is considering investing a project requiring a capital outlay of Rs. 2, 00,000. Forecast for annual income after depreciation but before tax is as follows : Year | Rs. | 1 | 1,00,000 | 2 | 1,00,000 | 3 | 80,000 | 4 | 80,000 | 5 | 40,000 | Depreciation may be taken as 20% on original cost taxation at 50% of net income. You are required to evaluate the project according to each of the following methods: a) Pay back method b) Rate of return on original investment method ...
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...A Study of Monetary Policy Impact on Stock Market Returns (With Special Reference to Nifty and Bank Nifty) A PROJECT REPORT Submitted by Chintan Divetia (1011416026) Submitted to Mr. Raviraj Gohil Assistant Professor Department of Finance In partial fulfilment for the award of the degree of POST GRADUATION DIPLOMA IN MANAGEMENT in Finance Shanti Business School, Shela, Ahmedabad. ACKNOWLEDGEMENT It was a great opportunity for me to work with Sharekhan Ltd., pioneers in the field of Stock Market. I am extremely grateful to all those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible. Firstly, I would like to thank my Company Mentor Mrs. Raina Vashi who has been a constant source of inspiration for me during the completion of this project. I would also like to thank Mr. Henal Bardoliwala, Relationship Manager of Sharekhan Ltd., for supporting me to complete my project. I am thankful to all staff of Sharekhan Ltd for their valuable support and cooperation during the entire tenure of this project. I thank my faculty guide Mr. Raviraj Gohil who helped me out at every critical situation that i faced in my project and gave us his valuable advice to solve problems. EXECUTIVE SUMMARY I feel great pleasure by presenting this project. As a student of PGDM of ‘Shanti Business School Ahmedabad’, there is a subject of partial training followed...
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