Education and Career Forum

Equity Derivatives is one of the most important courses in the Financial Markets course at IGNOU. The paper is of 100 marks and the candidates have to answer 5 long questions of 20 marks each. Each question has sub parts. The students are tested on the various aspects of Equity Derivatives and the different theories that go behind the financial market of Equity Derivatives. Since it is a practice oriented course, it will also test the candidate’s capacity to understand the financial market. The paper asks for a thorough knowledge of the subject. Some of the important questions that recur in almost all the papers are the definition of the various kinds of derivatives, evolution of derivatives, and how they are incorporated within the financial market. Questions from the Equity part are on intrinsic and time value concept of equity options etc. Short notes on important terms such as Bull spread using Calls; Bear Spread Using puts are also common.