Faculty Development Program (FDP) on Financial Derivatives and Risk Management
26 Jul 2021
The FDP and Conference Committee of CMS Business School, JAIN (Deemed-to-be University) conducted a five-day virtual faculty development program (FDP) for the finance faculty members. The program was titled Financial Derivatives and Risk Management, and it took place from July 12, 2021, to July 16, 2021. The convenor for the FDP was Dr. Shakeela Banu C, Assistant Professor at CMS Business School, JAIN (Deemed-to-be University). The guest speaker was Dr. Avijit Bakshi, Assistant Professor - Finance, CMS Business School, JAIN (Deemed-to-be University). Dr. Bakshi has over 17 years of academic and corporate experience in the finance and accounting domain.
On day one, Dr. Bakshi spoke on the topic, Introduction to Derivatives, Forward and Futures Contract, Future Pricing, Practical Problem Solution. The first-day session of the FDP covered topics like introduction to derivatives, components of a contract, milestones in the development of the Indian derivatives market, derivatives in India, factors affecting the growth of derivatives, hedgers, speculators, arbitrageurs, forwards, and the default risk in forward contracts.
On day two, the session was delivered under the title, Open Interest, Pay-off in Future Through Spreadsheet Modeling, MTM. The session offered an introduction to futures and highlighted the distinction between futures and forwards. The other topics included spot price, future price, contract cycle, expiry date, contract size, basis, initial margin, base prices, pay off for a long futures position, pay off for a short position, pay off for a long and short futures position, pricing stock futures with no dividend expected, maintenance margin, types of settlements, and application of stock futures. The session also distinguished among equity, index, and commodity futures.
On day three, the title for the session was Introduction to Options, Pay-off Through Spreadsheet Modeling, Option Pricing (Black-Scholes Model) Through Modeling. The third day of the program touched upon topics like option pricing, factors affecting option pricing, call and put options, call and put options of ACC from the NSE website, open interest, moneyness of an option contract, European and American options, Black-Scholes-Merton model, and implied volatility.
On day four, the session was titled Greeks & Implied Volatility, Live Trading of Options, Commodity Future as a Hedging Instrument. Dr. Bakshi shared his knowledge on commodity markets, MCX, NCDEX, metals and non-metals, agricultural commodities, factors influencing commodity market, hedging, payoffs, settlement, and Mark to market (MTM).
On day five, the session was delivered under the title, Theory of Comparative Advantage, Interest Rate & Currency Swap. It included the case study of Jet Airways. The other topics included swaps, hedge ratio, cost comparison based on hedging, LIBOR, and fixed and floating interests. The FDP concluded with doubt clarifications and discussions.