Indian Journal of Finance
By: Associated Management Consultants (P) Ltd.Single Issue
Single Issue
- IJF-Oct07-Article1-Speculation Strategies Using Investment in Options
- Price : 80.00
- Published on October 2, 2007
- Associated Management Consultants (P) Ltd.
- Issues 356
- Language - English
- Published daily
About this issue
Derivatives have emerged as the key financial instruments to hedge financial risk. The volatility and uncertainty in the global market has forced investors to use derivatives to hedge their positions. The speculator, being a risky player in the market, needs sound strategies for speculation, otherwise he may end up in making huge losses. This study aims at constructing an optimal portfolio of options for speculators and compares its performance with that of an optimal stocks portfolio. A mathematical programming model similar to Sharpe’s optimization model is used to construct these optimal portfolios. An attempt has been made to compare and analyze both the portfolios to show how the options portfolio gives better returns on average than the stocks portfolio.
About Indian Journal of Finance
Indian Journal of Finance, a source of sophisticated analysis of developments in the rapidly expanding world of finance, is a monthly journal with topics ranging from corporate to personal finance, insurance to financial economics and derivatives.