Derivatives are generally classified into contingent claims and forward commitments: Contingent Claims: These are derivatives whose payoffs are dependent on the occurrence of a specific event. Examples include options and credit default swaps (CDS). Call Option Contract (B): This is a contingent claim because its payoff depends on whether the underlying asset’s price exceeds the…
बॉन्ड कंवेक्षिटी, मनी कंवेक्षिटी और ड्यूरेशन को आसान भाषा में समझें जब भी कोई इन्वेस्टर या फाइनेंस प्रोफेशनल बॉन्ड (Bond) में निवेश करता है, तो उसे यह समझना जरूरी होता है कि बॉन्ड की कीमत (Price) पर ब्याज दर (Interest Rate) के बदलने का क्या असर पड़ेगा। इसके लिए तीन मुख्य कांसेप्ट बहुत जरूरी हैं:…
Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26, introducing a series of measures aimed at stimulating economic growth, providing tax relief to the middle class, and bolstering various sectors. Here’s a comprehensive overview of the key highlights: Income Tax Reforms: Increased Tax Exemption Limit: The income tax exemption threshold has…
India’s Economic Growth Outlook: Projections, Challenges, and Opportunities for FY25 and FY26 India’s economy continues to remain a beacon of growth amid global uncertainties. Various reputed institutions, including EY, IMF, World Bank, and RBI, have projected India’s GDP growth to hover around 6.5% for the fiscal years 2024-25 (FY25) and 2025-26 (FY26). While…
Economists classify a market into one of four structures: Perfect Competition, Monopolistic Competition Oligopoly Monopoly Perfect competition :- Perfect Competition refers to a market structure where there are a large number of sellers and buyers, and each seller offers a homogeneous (identical) product. In this type of market, no single seller or buyer can influence…
Concept of Inflation ➖ Inflation in economics refers to the general increase in the price level of goods and services in an economy over a period of time. When inflation occurs, each unit of currency buys fewer goods and services than it did before, resulting in a decrease in purchasing power. Key Concepts Related to…
Concept of Equilibrium ➖ Equilibrium in economics refers to a state where market forces—specifically demand and supply—are balanced, meaning the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers at a given price. This results in a stable situation where there is no inherent tendency for change,…