- Thursday, Apr 2nd, 2026
| TITLE | An Analytical Study of the Derivatives Market: Evidence from Futures and Options |
|---|---|
| ABSTRACT | The present study seeks to identify the disparity between the opportunities offered by the derivatives market and the extent to which investors are informed, prepared, and willing to utilise these opportunities. In the contemporary investment environment, where savings and investment decisions play a crucial role in financial planning, derivatives have emerged as both an investment avenue and an effective mechanism for risk management. Despite their significance, derivatives remain underutilised, largely due to limited awareness and cautious investor behaviour. This research concentrates on two key derivative instruments—futures and options—with specific emphasis on their risk–return characteristics, investor motivations, and the actual returns realised by investors. The study evaluates the extent to which investors are able to capitalise on the potential of the derivatives market and examines the factors contributing to the observed gap between market potential and investor participation. The findings of the study clearly demonstrate a substantial gap between the capabilities and benefits offered by the derivatives market and investors’ understanding, perceptions, and actual utilisation of these instruments. The study highlights the need for enhanced investor education and awareness initiatives to bridge this gap and promote informed participation in the derivatives market. |
| AUTHOR | J. Rithika, CH. Deepthi Student, Department of MBA, CMRTC, Hyderabad, India Assistant Professor, Department of MBA, CMRTC, Hyderabad, India |
| VOLUME | 11 |
| DOI | DOI:10.15680/IJARETY.2024.1105042 |
| 42_An Analytical Study of the Derivatives Market Evidence from Futures and Options.pdf | |
| KEYWORDS | |
| References | 1. Gunti, M. (2016). A study on financial derivatives. In Proceedings and selected research papers (p. 204). 2. National Stock Exchange of India. (2023). Equity quote: Bajaj Finserv Ltd. Retrieved from https://www.nseindia.com/get-quotes/equity?symbol=BAJAJFINSV 3. National Stock Exchange of India. (2023). Equity quote: LIC Housing Finance Ltd. Retrieved from https://www.nseindia.com/get-quotes/equity?symbol=LICHSGFIN 4. National Stock Exchange of India. (2023). Equity quote: Mindtree Ltd. Retrieved from https://www.nseindia.com/get-quotes/equity?symbol=MINDTREE 5. National Stock Exchange of India. (2023). Derivatives quote: Mindtree Ltd. Retrieved from https://www.nseindia.com/get-quotes/derivatives?symbol=MINDTREE 6. National Stock Exchange of India. (2023). Equity quote: Page Industries Ltd. Retrieved from https://www.nseindia.com/get-quotes/equity?symbol=PAGEIND 7. National Stock Exchange of India. (2023). Derivatives quote: Page Industries Ltd. Retrieved from https://www.nseindia.com/get-quotes/derivatives?symbol=PAGEIND 8. National Stock Exchange of India. (2023). Equity quote: Power Finance Corporation Ltd. Retrieved from https://www.nseindia.com/get-quotes/equity?symbol=PFC |
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