Already have an account? Get multiple benefits of using own account!
Login in your account..!
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Nifty index futures and option contracts are cash settled. All CMs are required to open a separate bank account with NSCCL designated clearing banks.
The open positions in the index futures contracts are marked-to-market at the settlement price of the contract at the end of each trading day. The members who have a loss position should pay the loss amount to NSCCL which is then transferred to the members who have made profits. This is known as daily mark-to-market settlement. The daily settlement price of the Nifty index futures contract is the closing price of the index futures contract which is computed by taking the weighted average of the prices of the daily settlement price. The mark-to-market losses and profits are directly debited and credited to the CM's and clearing bank account respectively.
On the expiry of the futures contract, NSCCL marks the open position of a clearing member to the final settlement price and the resulting profit or loss is settled in cash. The final settlement price is the closing value of the index price on the expiration day of the relevant index futures contract. The final settlement profit is the difference between the last mark-to-market price and the final settlement price of the corresponding index futures contract. Final settlement loss or profit is debited or credited to the relevant CM's bank account on the next day to the expiry day.
As the price of the futures contract changes, gains or losses accrue to the holder of the contract. The gains or losses are credited or debited to the margin account. If the price movements are adverse, the balance in the account falls. In these circumstances, the trader is required to replenish the margin, bringing it on par with the initial value whenever the level or value of funds on deposit with the broker reach a certain level. This level is referred to as the Maintenance Margin. The additional amount, which the trader deposits with the brokerage firm, is called the "Variation Margin".
evaluate the importance of leverage in financial management of a small scale company
#discuss the applicability of operating cycle to poultry business.
Discuss the option of dividend reinvestment plans
(a) Presume we have a portfolio of n names with some default correlation ρ . The risk of the complete portfolio moves according to the change in default correlation. Alternative
CONCEPTS OF WORKING CAPITAL There are two concepts of Working Capital - Net working capital and Gross Working capital. 1. Gross Working Capital Gross Working capital re
For holders of CARDS, the interest is paid monthly and the principal is not amortized. The principal payments made by credit card borrowers are
#quA stock has a current dividend of $0.32 with a growth rate of 8% annually. Assuming a 10% annual discount rate, what should the price of the stock be one year from today? Answer
Why is the replacement value of assets method not usually used to value complete businesses? The replacement value of assets process is not often applied to complete business v
Suppose, you are working as an investment consultant in a consultancy firm and most of your clients are habitual investors, who are maintaining their own portfolios comprising of v
Lenders in the US insist upon some kind of mortgage insurance. There are broadly two types of mortgage insurance - one is
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd