Geography and History of Costa Rica

Geology and History of Costa Rica Populace: 4.906 million (July 2017 estimate)Capital: San Josà ©Area: 19,730 square miles (51,100 sq km)Bordering nations: Nicaragua and PanamaCoastline: 802 miles (1,290 km)Highest point: Cerro Chirripo at 12,500 feet (3,810 m) Costa Rica, authoritatively called the Republic of Costa Rica, is situated on the Central American isthmus among Nicaragua and Panama. Since it is on an isthmus, Costa Rica additionally has coastlines along the Pacific Ocean and the Gulf of Mexico. The nation includes various rainforests and a plenty of vegetation which make it a well known goal for the travel industry and ecotourism. History Costa Rica was first investigated by Europeans starting in 1502 with Christopher Columbus. Columbus named the locale Costa Rica, which means rich coast, as he and different voyagers wanted to discover gold and silver in the zone. European settlement started in Costa Rica in 1522 and from the 1570s until the 1800s it was a Spanish state. In 1821, Costa Rica then joined other Spanish provinces in the locale and made a presentation of freedom from Spain. Presently, the recently autonomous Costa Rica and other previous provinces framed a Central American Federation. Be that as it may, collaboration between the nations was fleeting and fringe debates as often as possible happened in the mid-1800s. Because of these contentions, the Central American Federation in the end crumbled and in 1838, Costa Rica pronounced itself as a completely autonomous state. In the wake of proclaiming its freedom, Costa Rica experienced a time of stable majority rule government starting in 1899. In that year, the nation encountered its first free decisions which have proceeded until today in spite of two issues in the mid 1900s and in 1948. From 1917-1918, Costa Rica was under the authoritarian guideline of Federico Tinoco and in 1948, the presidential political decision was questioned and Jose Figueres drove a regular citizen uprising which prompted a 44-day common war. Costa Ricas common war caused the passings of in excess of 2,000 individuals and was one of the most rough occasions in the countrys history. Following the finish of the common war however, a constitution was composed which announced that the nation would have free races and all inclusive testimonial. Costa Ricas first political decision following the common war was in 1953 and was won by Figueres. Today, Costa Rica is known as one of the most steady and monetarily effective Latin American nations. Government Costa Rica is a republic with a solitary administrative body comprised of its Legislative Assembly whose individuals are chosen by famous vote. The legal part of government in Costa Rica is involved uniquely of a Supreme Court. Costa Ricas official branch has a head of state and head of government - the two of which are filled by the president who is chosen by famous vote. Costa Rica experienced its latest political decision in February 2010. Laura Chinchilla won the political race and turned into the countrys first female president. Financial matters and Land Use Costa Rica is viewed as one of the most financially prosperous nations in Central America and a significant piece of its economy originates from its rural fares. Costa Rica is a notable espresso creating locale and pineapples, bananas, sugar, hamburger, and fancy plants likewise add to its economy. The nation is likewise developing mechanically and produces merchandise, for example, clinical gear, materials and dress, development materials, compost, plastic items, and high-esteem products, for example, microchips. Ecotourism and the related help area is likewise a critical piece of Costa Ricas economy on the grounds that the nation is exceptionally biodiverse. Topography, Climate, and Biodiversity Costa Rica has a differed geology with seaside fields that are isolated by volcanic mountain ranges. There are three mountain ranges running all through the nation. The first of these is the Cordillera de Guanacaste and rushes to the Cordillera Central from the northern fringe with Nicaragua. The Cordillera Central runs between the focal piece of the nation and the southern Cordillera de Talamanca which limits the Meseta (Central Valley) close San Josã ©. The greater part of Costa Ricas espresso is delivered in this area. The atmosphere of Costa Rica is tropical and has a wet season that keeps going from May to November. San Jose, which is situated in Costa Ricas Central Valley, has a normal July high temperature of 82 °F (28 °C) and a normal January low of 59 °F (15 °C). The waterfront swamps of Costa Rica are amazingly biodiverse and highlight various kinds of plants and untamed life. The two coasts highlight mangrove swamps and the Gulf of Mexico side is intensely forested with tropical rainforests. Costa Rica additionally has a few enormous national parks to secure its plenty of verdure. A portion of these parks incorporate the Corcovado National Park (home to huge felines, for example, pumas and littler creatures like Costa Rican monkeys), Tortuguero National Park and Monteverde Cloud Forest Reserve. More Facts Costa Ricas official dialects are English and Creole Life anticipation in Costa Rica is 76.8 years Costa Ricas ethnic breakdown is 94% European and blended local European, 3% African, 1% local and 1% Chinese References Focal Intelligence Agency. (2010, April 22). CIA - The World Factbook - Costa Rica. Recovered from: https://www.cia.gov/library/distributions/the-world-factbook/geos/cs.htmlInfoplease.com. (n.d.) Costa Rica: History, Geography, Government, and Culture - Infoplease.com. Recovered from: infoplease.com/ipa/A0107430.htmlUnited States Department of State. (2010, February). Costa Rica (02/10). Recovered from: state.gov/r/dad/ei/bgn/2019.htm

Law of nature Essay

There are a few books that manage philosophical inquiries of freedom, social limitations, quest for property and opportunity versus oppression. I have chosen six identified with these subjects to be investigated and firmly broke down to comprehend those topics better. The second treatise of Government by John Locke has been since the time its first distribution in 1689 a compelling wellspring of political and social understanding. The USA constitution depends on the standards and subjects John Locke manages in this magnum opus of philosophical thinking. His principle contention in the book is that the sway is in the hands of the individuals and that the legislature is in their administration. Locke underscored the significance of staying alert as individuals of our regular and essential rights yet that we have needed to give up specific parts of this human opportunity to have the option to exist together calmly inside a general public controlled by laws built up to keep up the request. Individuals are consequently initially blessed with certain basic rights in a condition of nature where opportunity exists without laws or rules to withstand to. This law of nature does subsequently not expect individuals to comply with one another yet rather individuals are liberated to act naturally. The condition of nature is characterized by Locke himself as: â€Å"To appropriately comprehend political force and follow its causes, we should consider the express that all individuals are in normally. That is a condition of ideal opportunity of acting and discarding their own belongings and people as they might suspect fit inside the limits of the law of nature. Individuals in this state don't need to request that consent demonstration or rely upon the desire of others to mastermind matters for their benefit. The normal state is likewise one of fairness in which all force and purview is proportional and nobody has more than another. † Locke manages the subject of common society in this book and how we can politically exist together as individuals. To comprehend the valid and best type of a common society we have to grasp the principal right we are brought into the world with as people which is basically opportunity in its total sense. Mulling over this we have likewise to recognize the full implications this carries alongside it for everyone in spite of shading, ethnicity, religion or race. Since all individuals are brought into the world with this correct then it follows that all individuals are rise to and have the right to live in a framework that makes sure about this equity and opportunity of quest for one’s dreams. Locke’s second principle contention is the manner by which governments should just standard with the assent of the individuals and that any administration that doesn't becomes accordingly ill-conceived and has the right to be toppled by the individuals through their entitlement to transformation. He likewise manages the topics of victory and bondage, property and delegate government. Property for example lead to the formation of the common society as men tried to ensure his property through the law. Individuals traded a portion of their common rights so as to accomplish this type of common society where they could exist together calmly with others in a protected and secure climate. The agent government then again is possibly authentic in the event that it is recognized by the individuals and serves the requirements of the individuals. It is like this that Locke built up the standard that administrations ought to be there for the administration of the individuals instead of the other way around. Locke’s thoughts regarding subjugation then again are that it is basically a type of automatic bondage and the main way subjection could be defended as a framework that conflicts with the request for the common state is through the nonattendance of the condition of nature and the nearness of the contrary which is the condition of war during which exemptions were permitted. The conversation of servitude drives us to another significant work worried about the subject: The Life of Olaudah Equiano which is a self-portraying work that was first distributed in the eighteenth century and describes the account of subjugation and its revulsions. The narrative of his subjugation, gained opportunity and quest for fill in as a sailor and vendor is an interesting story of progress ahead and assurance at making progress, in spite of the hardships experienced en route, so as to acquire the regular right of opportunity back. Olaudah, similar to Locke, was a warrior for a reason. Locke’s book upset the thoughts regarding government and formed the USA constitution the manner in which we know it now. His safeguard of the privileges of the human keeps on impacting the talk on majority rules system, human rights and legislative issues. Olaudah’s excursion and battle for opportunity has additionally left enormous effect in the writing of subjection and he likewise helped during the time spent abrogating servitude later on. Those two noticeable men had a social vision of what a general public should resemble and battled to accomplish it. The book begins with the relate of Olaudah’s individual life before subjugation when he used to live in an African area called Assaka. He was captured and constrained into slavery(something that upholds Locke’s feeling about the constrained status of servitude as a foundation) at ten years old and shipped to the New World or to be progressively explicit the ranches of Virginia. He was bought by a lieutenant in the Navy called Michael Pascal who named him Gustavus Vassa, a name he additionally came to be known by. His life as a slave was a proceeds with battle and languishing. He was unable to endure the possibility of hardship of his privilege of opportunity and decided to revolt through denying the new name his proprietor gave him which lead to his discipline as though he was a negligible canine whose activity was to obey without hesitance. Being denied of his opportunity decreases the person into a creature. The life of the slave was extremely hard as per the diaries of Olaudah. He was later sold in the Caribbean and obtained by a Philadelphian Quaker who showed him how to peruse and compose better and taught him in the Christian confidence. He permitted him to exchange to win the cash required to purchase his opportunity as youngster in his twenties and ventured out to England where he battled for the reason for servitude cancelation. Olaudah saw in his book how slaves were treated as cruel subjects without any sentiments. It was as though the bosses believed them to be an alternate specie or an outsider animal. Our third book or novel is worried about an animal that shows those trademark: Frankenstein. Frankenstein by the writer Mary Shelley alludes to the researchers inside the book Victor Frankenstein who realizes how to make life and chooses to make an animal that resembles man yet with all the more remarkable attributes. The epic is comprised of the correspondence between the Captain Robert Walton and his sister. Walton happens to think about Frankenstein’s animal and describes the story to his sister in his letters. The story begins with Walton venturing out toward the North Pole where he will be caught by an ocean of gigantic ice rocks. This is the way Walton meets Victor Frankenstein and this is likewise how he comes to think about the beast Victor had made. Victor is himself unnerved by what he has made and flees in this way permitting the beast to be discharged. The grieved researcher feels debilitated with blame and his discouraged state possibly compounds when he finds out about the homicide of his sibling. Apparently the beast was who killed his sibling and this was clarified by the beast himself as an endeavor at delivering retribution of Victor who had treated him with repulsiveness and disturb. He asks Victor for a buddy since he can't stand the forlornness. Victor decides to oblige however later on thinks twice about it and decimates his second creation to which the beast promises retribution that he before long satisfies through killing one of his companions. The beast figures out how to likewise kill his lady and Victor chooses to follow the beast which drove him to meet Walton and kicks the bucket a couple of days after the fact on. Walton closes his letters by relating that he was so amazed to discover the beast sobbing on his body in misery and depression. Things being what they are, the beast had emotions like some other individual and could be acceptable or fiendish like some other ordinary individual. In any case, Victor’s dread and partiality blinded him from seeing that. Something very similar occurred with the white proprietors of slaves in the period of Olaudah. They quit considering the to be as individuals and viewed them as unimportant properties to be dreaded and questioned in the event that they acted contrastingly the way Olaudah did through instructing himself. The dread of the obscure is a trait of the human mind yet what is additionally a typical viewpoint between the white and dark man and the beast of Frankenstein is the need of opportunity. Our fourth book is the Communist proclamation by Karl Marx and Friedrich Engels. The principal distribution of the book occurred in 1848. Much the same as John Locke’s The Second Treatise of Government the Communist Manifesto is a compelling political original copy. The principle subject of the book is the class battle and the shortcomings of the entrepreneur framework. The Communist Manifesto is the thing that the socialist party reinforced the belief system of the Communist party. The Manifesto’s principle point was to make socialism increasingly comprehended by a bigger number of individuals since the gathering was dreaded and questioned by many. Karl Marx proceeds with then to check the contrasts between the middle class and working class since his fundamental center will be all through the paper on how the low class has been misled by the industrialist framework and average class. He states in the primary segment that: â€Å"The history of all up to this point existing society is the historical backdrop of class battles. Freeman and slave, patrician and plebeian, ruler and serf, organization ace and understudy, in a word, oppressor and persecuted, remained in consistent resistance to each other, carried on a continuous, presently covered up, presently open battle, a battle that each time finished, either in a progressive re-constitution of society everywhere, or in the regular destruction of the conte

Argumentative Essay Topics - Not As Good As They Used To Be

Argumentative Essay Topics - Not As Good As They Used To BeArgumentative essay topics, such as those involving gender roles, are not new to the academic writing world. The question that is becoming more relevant is how to get your point across without coming across as being argumentative.This is one of the reasons why lengthy essays are not a good idea when you are attempting to write an argumentative essay. You need to make sure that you know what you are writing about and how it relates to your topic. There are many persuasive writers out there who can assist you in this area.You can certainly still come across as being argumentative when using argumentative essay topics. The first thing that you need to do is take a look at the person who is reading your paper. Once you have determined who they are and what they are interested in, then you can go about addressing the topic that they are interested in.This can help you to come across as someone who can relate to the topic that you are writing about. These types of arguments can be very enlightening for the reader. This is not to say that they should be used only in the more formal settings. In fact, you should try to be more conversational than argumentative when dealing with these topics.But you need to remember that there is more to writing an essay than just using these essay topics. You also need to make sure that you are engaging the reader and making them feel as though they are participating in the discussion. When you make them feel like they are part of the conversation, you are more likely to have their interest.The way that you engage the audience is by using non-verbal cues and eye contact. They need to know that you are in the room and that you are listening. They also need to feel that they can relate to the ideas that you are discussing.Using argumentative essay topics will help you to avoid coming across as argumentative in the academic writing world. It is also much easier to know how you wan t to proceed with a topic once you have researched it and have an idea of the type of reader that you are.Writing your essay topics is essential. You should try to keep them simple so that you are not overdoing it.

How Did Attila the Hun Die

The death of Attila the Hun was an important high point in the waning days of the Roman Empire and how he died is something of a  mystery. Attila ruled the rival Hunnite Empire between the years 434–453 CE, a time when the Roman Empire had ineffective leadership who were struggling to manage their far-flung territories. The combination of Attilas might and Romes troubles proved lethal: Attila was able to conquer many of Romes territories and, finally, Rome itself. Attila the Warrior As the military leader of a central Asian nomadic group called the Huns, Attila was able to bring together multiple tribes of warriors to create vast armies. His ferocious troops would sweep in, decimate whole cities, and claim the territory for their own. Within just ten years, Attila went from leading a group of nomadic tribesmen to leading the (short-lived) Hunnite Empire. At the time of his death in 453 CE, his empire stretched from central Asia across to modern-day France and the Danube Valley. While Attilas achievements were tremendous, his sons were unable to carry on in his footsteps. By 469 CE, the Hunnite Empire had broken apart. Attilas defeat of Roman cities was due in part to his ruthlessness, but also to his willingness to make and break treaties. When dealing with the Romans, Attila first forced concessions from the cities and then attacked them, leaving devastation behind him and taking prisoners as slaves. Attilas Death Sources differ on the exact circumstances of Attilas death, but it seems clear that he died on his wedding night. The primary source for information is the 6th century Gothic monk/historian Jordanes, who had complete access to the writings of the 5th century historian Priscus—only parts of which have survived. According to Jordanes, in 453 CE, Attila had just married his latest wife, a young woman named Ildico, and celebrated with great feasting. In the morning, the guards broke into his room and found him dead in his bed, his bride weeping over him. There was no wound, and it seemed as though Attila had hemorrhaged through his nose, and he choked on his own blood. At the time of his death and since, various scenarios for how Attilas death occurred have been put forward. It is possible that Attila was assassinated by his new wife in a conspiracy with Marcian, rival Emperor of the East, and then that murder was covered up by the guards. It is also possible that he died accidentally as a result of alcohol poisoning or esophageal hemorrhage. The most probable cause, as suggested by the historian Priscus of Panium, is a burst blood vessel—a result of decades of large amounts of alcohol. Burial Attila was buried in three coffins, one nested inside the other; the outer one was of iron, the middle one was of silver, and the inner one was of gold. According to legends of the time, when Attilas body was buried, those who buried him were killed so that his burial place would not be discovered. Though several recent reports have claimed to have discovered Attilas tomb, those claims have proven to be false. To date, no one knows where Attila the Hun is buried. One unverified story suggests that his followers diverted a river, buried Attila, and then allowed the river to return to its course. If that were the case, then Attila the Hun still lies safely buried under a river in Asia. Repercussions Once Attila died, reports Priscus, the men of the army cut their long hair and slashed their cheeks out of grief, so that the greatest of all warriors should be mourned not with tears or the wailing of women but rather with the blood of men. The death of Attila led to the collapse of the Hun Empire. Three of his sons fought among themselves, the army broke up into pieces supporting one or other of the sons, and as a result suffered severe losses. The Roman Empire was now freed from the threat of invasion by the Huns, but it wasnt enough to halt their own inevitable decay. Sources and Further Reading Babcock, Michael A. The Night Attila Died: Solving the Murder of Atilla the Hun. Berkley Books, 2005.  Ecsedy, Ildikà ³. The Oriental Background to the Hungarian Tradition About Attilas Tomb. Acta Orientalia Academiae Scientiarum Hungaricae 36.1/3 (1982): 129–53. Print.Kelly, Christopher. The End of Empire: Attila the Hun the Fall of Rome. New York: W.W. North, 2006.  Man, John. Attila: The Barbarian King Who Challenged Rome. New York: St. Martins Press, 2005.Priscus of Panium. The Fragmentary History of Priscus: Attila, the Huns and the Roman Empire AD 430–476. Trans: Given, John. Merchantville NJ: Evolution Publishing, 2014.

Strategies to Handle a Disruptive Student

Teachers understand that the time they have with their students is limited. Good teachers maximize their instructional time and minimize distractions. They are experts at handling adversity. They deal with problems quickly and efficiently minimizing the disruptions.The most common distraction in a classroom is a disruptive student. This presents itself in many forms and a teacher must be adequately prepared to address every situation. They must react quickly and appropriately while maintaining the dignity of the student.Teachers should always have a plan or certain strategies they rely on to handle a disruptive student. It is important to realize that every situation will be different. A strategy that works well for one student may set another one off. Individualize the situation and make your decisions based on what you feel will minimize the distraction with that particular student the fastest. Prevention First Prevention is the best way to handle a disruptive student. The first few days of the school year are arguably the most important. They set the tone for the whole school year. Students are feeling out teachers. They will push to see exactly what they are allowed to get away with doing. It is important for teachers to establish those boundaries quickly. Doing so will help deter problems later on down the road. It is also important to start building rapport with your students immediately. Fostering a relationship based on trust with students can go a long way in disruption prevention simply out of mutual respect for one another. Stay Calm and Emotion Free A teacher should never yell at a student or tell a student to â€Å"shut up. While it may temporarily diffuse the situation, it will do more harm than good. Teachers must stay calm when addressing a disruptive student. In many cases, a student is trying to get the teacher to react foolishly. If you stay calm and keep your wits, it can diffuse the situation rather quickly. If you become combative and confrontational, it can escalate the situation making it a potentially dangerous situation. Getting emotional and taking it personally will only be detrimental and ultimately hurts your credibility as a teacher. Be Firm and Direct The worst thing a teacher can do is to ignore a situation that they hope will go away. Do not allow your students to get away with the little things. Immediately confront them about their behavior. Have them tell you what they are doing wrong, why it is a problem, and what the proper behavior is. Educate them on how their behavior impacts others. Students may resist structure early on, but they ultimately embrace it because they feel safe in a structured learning environment. Listen Carefully to Students Do not jump to conclusions. If a student has something to say, then listen to their side. Sometimes, there are things that led to the disruption that you may not have seen. Sometimes there are things going on outside of the classroom that led to the behavior. Sometimes their behavior may be a cry for help and listening to them may allow you to get them some help. Repeat their concerns to them so that they know you have been listening. It may not make a difference in how you handle the situation, but listening may build some trust or provide you with insights into other issues that are more important. Remove the Audience Never intentionally embarrass a student or call them out in front of their classmates. It will do more harm than it will good. Addressing a student individually in the hallway or after class will ultimately be more productive than addressing them in front of their peers. They will be more receptive to what you have to say. They are probably likely to be more open and honest with you. It is important to maintain the dignity of all of your students. No one wants to be called out in front of his or her peers. Doing so ultimately damages your credibility and undermines your authority as a teacher. Give Students Ownership Student ownership offers individual empowerment and potentially has the greatest impact on behavior change. It is easy for teachers to say it is my way or the highway, but allowing students to develop an autonomous plan for behavior correction may be more effective. Give them the opportunity for self-correction. Encourage them to establish individual goals, rewards for meeting those goals, and consequences when they do not. Have the student create and sign a contract detailing these things. Encourage the student to keep a copy in a place that they often see such as their locker, mirror, notebook, etc. Conduct a Parent Meeting Most parents expect their children to behave while they are at school. There are exceptions, but most will be cooperative and helpful in improving the situation. Teachers should have documentation detailing every issue and how it was addressed. You will likely see more positive results if you request that the student sit in on your meeting with their parents. This also prevents he/she said and the teacher said issues. Ask the parents for suggestions from their perspective on how to deal with these issues. They may be able to provide you with strategies that work for them at home. It is important to work together to create a potential solution. Create a Student Behavior Plan A student behavior plan is a written agreement between the student, their parents, and teachers. The plan outlines expected behaviors, provides incentives for behaving appropriately, and consequences for poor behavior. A behavior plan provides a direct plan of action for a teacher if the student continues to be disruptive. This contract should be specifically written to address the issues the teacher sees in class. The plan can also include outside resources for help such as counseling. The plan may be modified or revisited at any time. Get an Administrator Involved Good teachers are able to handle the majority of their own discipline issues. They rarely refer a student to an administrator. In some cases, it becomes a necessity. A student should be sent to the office when a teacher has exhausted every other avenue and/or a student has become such as distraction that it is detrimental to the learning environment. Sometimes, getting an administrator involved may be the only effective deterrent for poor student behavior.  They have a different set of options that may get a student’s attention and help correct the problem. Follow Up Following up can prevent recurrences in the future. If the student has corrected their behavior, then periodically tell them that you are proud of them. Encourage them to keep working hard. Even a little improvement should be recognized. If parents and administrators become involved then let them know how things are going from time to time as well. As a teacher, you are the one in the trenches seeing first hand what is going on. Providing positive updates and feedback can help ensure a good working relationship in the future.

Privacy And Security Privacy Vs. Security - 1503 Words

Privacy versus Security Privacy is something that is valuable, and gives trust to both sides. Everyone is endowed with some degree of privacy, right? The debate of the topic privacy versus security has been going on for a while. Most people believe privacy is more important, giving people the chance to be relaxed without anyone watching them, literally or figuratively speaking. Governments believe that security is more important, claiming it will help with terrorism and lower the crime rate. If we allow this to happen, then as an example, the government could monitor our phones conversations, what web sites we visit, the games or programs we download, even where we go throughout our day by tracking us on the GPS unit in our smartphones. Privacy is more important than security because students around the globe want to feel their governments, their employers, and their friends do not need to have cameras or GPS units monitor their every move. Governments asking for master keys for the products their citiz ens use does not instill a feeling of trust by the government in its citizens, it instills fear and resentment. Many european countries have positioned themselves in a way that allows them to monitor their citizens, dictate lifestyles to their citizens, control access to the internet, and manipulate what the media talks about or the positions that are supported. Much of this is done in the name of security for the greater good of all its citizens, and many of those sameShow MoreRelatedThe Security Vs. Privacy1537 Words   |  7 Pages1. At stake are two forces representing a critical dilemma of the post-2001 world: security vs. privacy. Fighting for security, the FBI is seeking â€Å"backdoor† access to the iPhone in question that was used by one of the two suspects in the San Bernardino shooting in December 2015. Defending privacy is Apple, Inc., designer and marketer of the Apple iPhone. 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Personal Privacy1838 Words   |  8 Pages The topic of national security vs. personal privacy, in recent events, has been very controversial regarding which is more appropriate. On one hand, the government can search through personal, private files without any consent from the owner, thus making the information no longer private. The opposing side argues that the government is invading personal privacy of innocent civilians, violating the Fourth Amendment Rights to prohibit unreasonable searches and se izures. Both have valid points, bothRead MoreNational Security Vs. Digital Privacy1735 Words   |  7 PagesAmerica, the optimal solution thus far is enhancing security throughout the nation. By doing so, policies, procedures, and protocols would be amended for the sole purpose of protecting the country. Such alterations should be made because it prevents crime in a timely, reliable, and successful manner, whilst preserving the fundamental rights of all United States Citizens. In light of the controversy over national security versus digital privacy, the government should partake in international surveillance

Heart Is A Lonely Hunter By Carson free essay sample

Mccullerss Essay, Research Paper The Heart is a Alone Hunter by Carson McCullers is a fresh set in a little Southern town in the late 1930 # 8217 ; s. McCullers writes about characters who are lonely and rejected. their lives intertwine in a hunt for friendly relationship and apprehension. Many of the characters have a demand to be understood, nevertheless ; none of them of all time genuinely are. One of the characters in the novel, Jake Blount, searches for a sympathetic ear. He appears in the New York Cafe rummy and rowdy speaking to everyone and no 1. He talks so much the # 8220 ; words came out of his pharynx like a cataract # 8221 ; ( 13 ) . He invariably talks to everyone trusting person will take the clip to truly listen and understand. His words come out # 8220 ; as though a dam interior him has broken # 8221 ; ( 20 ) . Ironically, the 1 he thinks understands him is a deaf-and-dumb person named John Singer. He tells Singer, # 8220 ; You # 8217 ; re the lone 1 in this town who catches what I mean. We will write a custom essay sample on Heart Is A Lonely Hunter By Carson or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page . . because I know you understand the things I privation to intend # 8221 ; ( 59 ) . Jake Blount merely assumes Singer understands him. Singer neer gives him ground to believe otherwise. Nevertheless, Singer writes about Blount in a missive to Antonapoulos, # 8220 ; The 1 with the moustache I think is brainsick # 8221 ; ( 183 ) . He besides writes Antonapoulos that Blount thinks # 8220 ; he and I have a secret together but I do non cognize what it is # 8221 ; ( 183 ) . Jake Blount thinks Singer understands him when he really does non. Another character seeking for apprehension is Dr. Benedict Mady Copeland. Dr. Copeland is a black physician with thoughts that on one seems to understand regardless of how difficult he tries to do them grok. His girl, Portia, says that when she was a miss, he was # 8220 ; all the clip analyzing by hisself # 8221 ; ( 41 ) . Dr. Copeland is good educated and this separates him from the remainder of his household. They do non understand why he has ever felt the demand to educate them. At a Christmas party, Dr. Copeland negotiations to the invitees about Karl Marx and tungsten hat he stood for. When he asks if everyone understands, they reply that they do. This makes him inquire if they are replying this manner merely to delight him. He finally turns to Mr. Singer for understanding. Dr. Copeland thinks Mr. Singer is wise and understands # 8220 ; the strong true intent in a manner that other white work forces could non # 8221 ; ( 114 ) . Mr. Singer admits in a missive to Antonapoulos that he in fact does non understand. John Singer is another character who feels a demand for understanding. He is a deaf-and-dumb person that everyone else seems to turn to when they need to vent their feelings. Singer does non pass on frequently unless by pen. He normally watches what everyone else has to say. Singer is in demand of understanding merely every bit much as the other characters but has no 1 with whom he can portion his feelings. His deaf-and-dumb friend, Antonapoulos, seems to be the merely individual who he can truly # 8220 ; talk # 8221 ; to even though he does non rather grok everything Singer tells him. Singer and Antonapoulos have been friends for 10 old ages and although Antonapoulos does non try to pass on with Singer unless he is hungry or sleepy, Singer continues to state him everything that is on his head. Singer assumes an understanding in Antonapoulos. In his missive to Antonapoulos Singer tells him, # 8220 ; I do non understand, so I write it to you because I think you will understand # 8221 ; ( 184 ) . He besides tells Antonapoulos that he wants to see him because # 8220 ; I am non meant to be entirely and without you who understand # 8221 ; ( 185 ) . McCullers # 8217 ; characters have the demand to be understood. Most think they find understanding in Singer, a deaf-and-dumb person who truly understands nil. Singer thinks the merely one he can pass on with is Antonapoulos, his deaf-and-dumb friend who is normally interested in everything but what Singer has to state. Throughout the novel, these characters search for something to make full their feelings of solitariness and rejection but in the terminal neer find it.

Misuse of Power The Cuban Missile Crisis free essay sample

This paper considers constitutional and moral limits to the powers granted to the American President under executive privilege, especially as concerns President Kennedy?s actions during the Cuban Missile Crisis. The author examines the impacts of the misuses of power with special reference to this example. It is often said that the President of the United States is the most powerful person in the world. But is that true? What are the powers of the president, for example, in a crisis situation? And how far can he push his authority? In some cases, the Constitution is very vague about the powers of the president;Article II, section 1 states simply: The executive Power shall be vested in the President of the United States. Article II, section 3 states that the president shall take Care that the Laws be faithfully executed. Whatever the intent of this vagueness, future generations would be left to argue the case for or against giving more power to the president, depending on the situation. We will write a custom essay sample on Misuse of Power: The Cuban Missile Crisis or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page These powers, as interpreted over time, are inherent powers.

Complete Guide on How to Write a Case Brief

Complete Guide on How to Write a Case Brief You’ve heard a lot about a case brief in your class at law school. What is it? And why do students hate this case brief so much? We are going to come through the process of writing together to help you deliver excellent content. How to write a case brief? Actually, the word â€Å"brief† serves different purposes in law. Now we are talking about a case brief that prepared typically by law paralegal students and other people studying law; it's a summary of the key points in a court decision. Usually, that's going to be in an appellate court decision; this paper is really short and typically takes a page or less. Why do we need briefing? The main point is to understand some basic principle of law, how it is being applied to a particular set of facts. The second reason is preparing for finals; you will apply this experience to your final exam. What should you write about in your casebook? Order Case Brief Standard Case Brief: Its Structure Title Reporter Publisher Court Year Procedural posture (how it got to the court of appeal) Statement of facts (narrative story) Issues of appeal (issues that were decided on appeal) Arguments (arguments on each side) Policy implications (different ways that the judged could have gone) Black letter law (rule of law) Rationale (appellate that judges used to make a decision) Dissents (any particular dissenting or concurring opinions) How to Write a Case Brief: Step By Step Guide Standard advice says you should open such paper with the case citation: put the name of both parties, which is usually something like â€Å"Jones versus Smith†. The opening lines include publisher, source. Write a court that made the decision and the year when final opinion was published. Statement Facts The first part is going to be setting out each fact. You must distinguish what facts really matter for the court decision. Here we disregard information that doesn’t have any bearing of a court decision. Reading the facts that case is dealing with helps to eliminate elements that are not relevant to the court’s decision. Identify facts established at trial. Procedural History In order to develop this section, answer the key questions: What court issued this opinion? How did the case get there? Find out, whether the case comes up from the trial court on appeal or it comes from another appellate court. The procedural history doesn’t matter unless the case turns on something that happened in procedural history. Issue It is the key question the court has to decide in a field of law. Note that it is a legal question. You must spot the issue and articulate the jest in a question. Now, fortunately for the students and people reading these cases, the courts usually are very helpful as all cases start with the words identifying the issue. For example, â€Å"the issue we face today is whether...† Frequently, the court will state that legal issue. It is a problem presented to the trial, and the court is going to be struggling with. The answer is to determinate who wins the case. In some briefs, we might put the holding. It’s a concise part, consists of 1-2 words to answer fundamental question. Rule It is a set of law that judges use to decide a particular case; it may include more than one rule depending on how complicated is the issue or how many problems it involves. In most situations, judges must consider a couple of different rules: it depends on the facts; the judges will discuss these rules; including all the important points in the front of your paper is crucial. Application Sometimes people call it analysis or reasoning. In this section, you should explain the choice of judges. Keep in mind the facts and put them together with the law they have used. The court will state what each party contends. Read the parts attentively; it helps to identify how the court applies the law to the issue. Conclusion It is a short statement saying the court affirmed or reversed the case and held for the appellant, appellee or defendant. However, the parties are designated. It’s time to say who won and who lost. Order Your Paper Brief in 11 Steps Read the case carefully. Do it twice. Identify facts. Choose the best brief format. Find a proper form. Create an outline. It’s your plan to stick for not being lost in writing. Elaborate every part of your paper. Describe rational, explain disposition in your own words. Find another opinion to include in your casebook. Remember that your paper must respond to a particular style format! Check the grammar. Re-read the paper in 1-2 days. Look with a fresh eye. Find out how the case relates to other similar cases. Give the answer whether you agree or disagree with the court? And how might it have been decided? By using the case brief, we have better understanding of law principles. Standard thinking says the more cases you read, the more you will be able to think like a lawyer. And it's certainly true! You will read lots and lots of cases, and the practice makes things simple. It's a good idea to get what goes into specific case, why a judge decided the particular way. You may learn how to use cases in your practice as both a sword and shield when you're litigating a particular idea. It can be even a different way for you to study.   There are no doubts that you’ll create the top-notch paper following our pieces of advice. Don't have much time for working on your new assignment? We know you’ve already prudent in a case brief making and other written tasks. Let our professional team do the entire job for you while you enjoy your student’s life! Contact us easily by email address or fill in the order form.

Fine and Gross Motor Skills Research Paper Example | Topics and Well Written Essays - 500 words

Fine and Gross Motor Skills - Research Paper Example Childcare means ensuring that the environment the baby is growing up in is safe and healthy enough for the child and this is the work of parents, guardians, grandparents and other relatives, babysitters or even nanny, licensed child care centers as well as older siblings. Even when the parents are working and have to leave the child with other people who are capable, they should still ensure that the environment is safe and healthy for the children and communicate the same to those taking care of the children. What should be considered before leaving the child with just anyone is the interaction of that person with the baby, the cleanliness and safety of the environment, activities the child can participate in, the food and beverages being provided and whether they are healthy enough as well as how the person engages in activities with the children. If the staff or individual does not look happy to interact, then the child will not have enough development with that person.  What so me parents do not realize when it comes to reading to children is that it is never too early to do so. The earlier the reading and frequency the more the baby starts learning vocabulary as well as getting their brain cells stimulated to grow. The baby also starts getting and strengthening listening skills as well as gaining memory skills. Reading also promotes bonding with the child with the soothing sounds of a parent’s voice. The baby also starts getting awareness of the world in addition to beginning a reading culture in them. Different age groups have different reading books as well as capacity they can understand. Their concentration span increases with age and hence only a few pages should be read at a time and increase as the child develops. The presence of animals and drawings in a baby’s book helps in learning while encouraging them to repeat as you read along with them builds their confidence and reading skills as they grow up and start pre-school.

Ethical Theories identified in (bazerman) and the Essay

Ethical Theories identified in (bazerman) and the - Essay Example The Johnson clearly adores teaching, and his work was intended to give learners and educators a wide-ranging overview of issues in ethics and leadership. The metaphor his book adopts, light and dark, claims the point that followership and leadership can be either toxic or beneficial. In the contemporary world, leaders can seriously be unethical. Examples of such unethical practices range from the American legislators who fiddled their own expenses to the ‘Masters of Universe’ whose monetary creativity almost led to the downfall of banking system but still got rewarded with huge bonuses (Johnson, 2015). However, this unethical behaviour is offset by few remarkable leaders who, in his own words, â€Å"brighten lives of people around them†. Johnson further gives an inspiring instance of this ethical leadership by citing the effort of Dr P. Farmer, who founded Partners in Health – an organization with a mission to combat drug-resistant tuberculosis within priso ns walls and around the globe. According to Johnson (2015), we see analogy of villains and heroes when conversing how leaders try to affect change. Johnson asserts that the power which comes with being a leader may also be utilized for evil and good. When we undertake the merits of leadership, we assume ethical burdens at the same time. In making ethical choices, the leader attempts to cast more â€Å"light† not â€Å"shadow.† Even though a graphic and unfriendly comparison, envision of Hitler and Ghandi. If one subscribes to outmoded definitions like influencing persons toward accomplishment of common goals, both Hitler and Ghandi were leaders though their ethics were dissimilar. For many ages, corporate America has always been stained by unethical decision and disreputable behaviour. For instance, one can remember false advertising by Jenny Craig and Nutri-System, fraud and unlawful cash

Presentation of information Essay Example for Free

Presentation of information Essay Here is various data which I obtained from the 2001 West Finchley census that is based around the demography of the area. This data will help me to make conclusions about potential customers, levels of income etc. I have converted some census data into graphs and kept some as tables.  From this graph taken from the census data, it is clear that the majority of people living in Finchley Central are aged 20-64. From this data, Coffee Republic has a good age gap to provide coffee and other beverages to potential customers. However, there is still a high amount of 5-19 year olds, so they may need to provide an alternative for the younger people instead of coffee, such as a sandwich or juice. The most popular mode of transport that employed residents use here is the train via the underground station. This is very significant for Coffee Republic as the underground station is very near to the site where the possible Coffee Republic would locate. This would mean that Coffee Republic could be able to obtain many customers from the underground station as a lot of employed people would be leaving the station to go home in Finchley Central. This table acquired from the census, shows us what percentage of the residents in Finchley Central are economically active. There are a lot of employed people shown in this data, which can provide the possibility of customers, as the employed have more disposable income to spend on such indulgences that Coffee Republic provides. From the table above, I can see that 18% of people in Finchley Central are classed in the large employer, higher managerial/higher professional group. This information tells me how much possible disposable income potential customers may have by looking at their economic classification. By looking at this group in particular, it can show that this group of people have a high amount of disposable income as this group is associated with high paid jobs such as doctors, lawyers etc. From gathering this information, it can help to make a decision on pricing, as Coffee Republic will need to set a pricing strategy that will suit its target market. This table shows that 10% of people in Finchley Central work from home. This indicates that this class of people may not have a lot of disposable income to spend on luxuries, which can mean people in this category may not visit the potential Coffee Republic. This would mean that Coffee Republic may need to set a low price for their quality products to appeal to this set of people, as this category of people may not earn a lot of money compared to those in a high professional role. Data from upmystreet: This map shows data which I have collected from www.upmystreet.com. It lists the ten surrounding coffee shops in Finchley Central, which may prove to be potential competitors to Coffee Republic. This can help me to pick out which of these competitors would be a threat to Coffee Republic. From the competitors map I can see that there are a large number of competitors surrounding the potential location of the new franchise. This data shows me whether locating a new franchise would be a sound business decision as a large number of competitors could be detrimental to Coffee Republic. On the contrary, the map shows that the competition is small scale businesses e.g. local cafà ¯Ã‚ ¿Ã‚ ½s, which could mean that locating a franchise there would eliminate them, due to the reputable name and brand that Coffee Republic has built up. The Coffee Republic franchise process:-  This flowchart shows the processes and steps involved in creating a Coffee Republic Franchise. Possible franchisors will always look to these steps when considering creating a new Coffee Republic franchise. I obtained this information from the Coffee Republic franchise pack from the Coffee Republic website.

Sobeys Business side in general :: essays research papers

 ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Production Department The production department at Sobeys will look after the land and the buildings that they own or rent. In most cases Sobeys owns 5 stores to one warehouse. Sobeys production department also makes sure that all the necessary equipment is in working order and there is enough time. They make sure that the delivery trucks are working and if any thing like a meat grinder or an oven needs repairing that it gets done. They also check to see that the cash registers are working. They can check this through a central computer that is connected to all the cash registers in the region (Sobeys Ontario). They also look at the type of people they need to do the necessary jobs then relay it back to the Human Resources department. They will have all the operators who will drive forklifts at the factories and truck drivers. Also the support staff processes the orders for new equipment and tools. They also hire support staff to do the jobs that Sobey staff aren’t trained to do (plumbing, electrical). They also have managers who make sure that everything is running smoothly and that no one is wasting time and everyone is getting the proper amount of breaks. They look at the raw materials that is used for the bake shop and meat department and make sure that there is enough stock in the warehouse to last until there next bulk order comes in. Then that bulk order is broken down into smaller but still bulk orders for the different stores to use. Some products are delivered straight from the suppliers warehouse to the store. They also make sure that the product isn’t damaged when received or sold to consumers. Some other areas that the production department is in charge of is quality control, making sure that the product is made to the best it can be made, meeting deadlines, making sure the product reaches the store on time and that anything that has to be made or cut is done on time. They also look at keeping the product cost efficient but this sometimes shows in their products. Sobeys sells to a variety of people with very diverse economic backgrounds. So they sell high quality products that cost more and not so good products that cost less.  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Marketing and Sales This department at Sobeys looks at ways that they market themselves and the amount of sales.

A Study on Futures and Potions

A STUDY ON FUTURES AND POTIONS Project submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION DECLARATION I hereby declare that this Project Report titled, â€Å"A STUDY ON THE DERIVATIVES† submitted by me to the Department OF BUSINESS ADMINISTRATION, XXXX and is a bonafide work under taken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before. Name and Address of the StudentSignature of the student Date : ACKNOWLEDGEMENTI wish to express my sincere deep sense of gratitude and also thank my guide XXX, Faculty of Finance for his significant suggestions and help in every aspect to accomplish the project work. His persisting encouragement, everlasting patience and keen interest in discussions have benefited me to the extent that cannot be spanned by words. I take my pleasure to acknowledge XXXX for the facilities provided and constant encouragem ent. Finally I express bows to everyone who are involved with this project. CONTENTS INTRODUCTION METHODOLOGY 1 FUTURES 2 OPTIONS ANALYSIS OF THE STUDYSUMMARY AND CONCLUSIONS BIBLIOGRAPHY INTRODUCTION Nature of the problem: The turnover of the stock exchanges has been tremendously increasing from last 10 years. The number of trades and the number of investors, who are participating, have increased. The investors are willing to reduce their risk, so they are seeking for the risk management tools. Prior to SEBI abolishing the BADLA system, the investors had this system as a source of reducing the risk, as it has many problems like no strong margining system, unclear expiration date and generating counter party risk.In view of this problem SEBI abolished the BADLA system. After the abolition of the BADLA system, the investors are seeking for a hedging system, which could reduce their portfolio risk. SEBI thought the introduction of the derivatives trading, as a first step it has set up a 24 member committee under the chairmanship of Dr. L. C. Gupta to develop the appropriate regulatory framework for derivative trading in India, SEBI accepted the recommendations of the committee on May 11, 1998 and approved the phased introduction of the derivatives trading beginning with stock index futures.There are many investors who are willing to trade in the derivative segment, because of its advantages like limited loss and unlimited profit by paying the small premiums. IMPORTANCE OF THE STUDY: To evaluate the profit/loss position of option holder and option writer. OBJECTIVES OF THE STUDY: ? To analyze the derivatives market in India. ? To analyze the operations of futures and options. ? To find out the profit/loss position of the option writer and option holder. ? To study about risk management with the help of derivatives. SCOPE OF THE STUDY:The study is limited to â€Å"Derivatives† with special reference to futures and options in the Indian context and the Hyder abad stock exchange has been taken as a representative sample for the study. The study can’t be said as totally perfect. Any alteration may come. The study has only made a humble attempt at evaluating derivatives market only in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, NYSE etc. LIMITATIONS OF THE STUDY: The following are the limitations of this study. The scrip chosen for analysis is STATE BANK OF INDIA and the contract taken is March 2005 ending one-month contract. ? The data collected is completely restricted to the STATE BANK OF INDIA of March 2005; hence this analysis cannot be taken as universal. METHODOLOGY The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices.By their very nature, the financial ma rkets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking–in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivatives are risk management instruments, which derive their value from an underlying asset.The underlying asset can be bullion, index, share, bonds, currency, interest etc. Banks, securities firms, companies and investors to hedge risks, to gain access to cheaper money and to make profit, use derivatives. Derivatives are likely to grow even at a faster rate in future. DEFINITION: Derivative is a product whose value is derived from the value of an underlying asset in a contractual manner. The underlying a sset can be equity, forex, commodity or any other asset. Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"derivative† to include – 1.A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. 2. A contract which derives its value from the prices, or index of prices, of underlying securities. PARTICIPANTS: The following three broad categories of participants in the derivatives market. HEDGERS: Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. SPECULATORS: Speculators wish to bet on future movements in the price of an asset.Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. ARBITRAGEURS: Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. FUNCTIONS OF DERIVATIVES MARKET: The following are the various functions that are performed by the derivatives markets.They are: ? Prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. ? Derivatives market helps to transfer risks from those who have them but may not like them to those who have an appetite for them. ? Derivative trading acts as a catalyst for new entrepreneurial activity. ? Derivatives markets help increase savings and investment in the long run. Types of derivatives: the following are the various types of derivatives. They are: Forwards:A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the futu re at today’s pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Options: Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.Warrants: Options generally have lives of upto one year; the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset i s usually a moving average of a basket of assets. Equity index options are a form of basket options. Swaps:Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency. _ Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite Direction. Swaptions: Swaptions are options to buy or sell a swap that will become operative at the expiry of the options.Thus a swaption is an option on a forward swap. RATIONALE BEHIND THE DEVELOPMENT OF DERIVATIVES: Holding portfolio of securities is associated with the risk of the possibility that the investor may realize his returns, which would be much lesser than what he expected to get. There are various factors, which affect the returns: 1. Price or dividend (interest). 2. Some are internal to the firm like – ? Industrial policy ? Management capabilities ? Consumer’s preference ? Labor strike, etc. These forces are to a large extent controllable and are termed as non Systematic risks.An investor can easily manage such non-systematic by having a well – diversified portfolio spread across the companies, industries and groups so that a loss in one may easily be compensated with a gain in other. There are yet other types of influences which are external to the firm, cannot be controlled and affect large number of securities. They are termed as systematic risk. They are: 1. Economic 2. Political 3. Sociological changes are sources of systematic risk. For instance, inflation, interest rate, etc. their effect is to cause prices of nearly all individual stocks to move together in the same manner.We therefore quite often find s tock prices falling from time to time in spite of company’s earnings rising and vice versa. Rationale behind the development of derivatives market is to manage this systematic risk, liquidity and liquidity in the sense of being able to buy and sell relatively large amounts quickly without substantial price concessions. In debt market, a large position of the total risk of securities is systematic. Debt instruments are also finite life securities with limited marketability due to their small size relative to many common stocks.Those factors favour for the purpose of both portfolio hedging and speculation, the introduction of a derivative security that is on some broader market rather than an individual security. India has vibrant securities market with strong retail participation that has rolled over the years. It was until recently basically cash market with a facility to carry forward positions in actively traded ‘A’ group scrips from one settlement to another b y paying the required margins and borrowing some money and securities in a separate carry forward session held for this purpose.However, a need was felt to introduce financial products like in other financial markets world over which are characterized with high degree of derivative products in India. Derivative products allow the user to transfer this price risk by looking in the asset price there by minimizing the impact of fluctuations in the asset price on his balance sheet and have assured cash flows. Derivatives are risk management instruments, which derive their value from an underlying asset. The underlying asset can be bullion, index, shares, bonds, currency etc.DERIVATIVE SEGMENT AT NATIONAL STOCK EXCHANGE: The derivatives segment on the exchange commenced with S&P CNX Nifty Index futures on June 12, 20007. The F&O segment of NSE provides trading facilities for the following derivative segment: 1. Index Based Futures 2. Index Based Options 3. Individual Stock Options 4. Ind ividual Stock Futures |COMPANY NAME |CODE |LOT SIZE | |ABB Ltd. ABB |200 | |Associated Cement Co. Ltd. |ACC |750 | |Allahabad Bank |ALBK |2450 | |Andhra Bank |ANDHRABANK |2300 | |Arvind Mills Ltd. ARVINDMILL |2150 | |Ashok Leyland Ltd |ASHOKLEY |9550 | |Bajaj Auto Ltd. |BAJAJAUTO |200 | |Bank of Baroda |BANKBARODA |1400 | |Bank of India |BANKINDIA |1900 | |Bharat Electronics Ltd. BEL |550 | |Bharat Forge Co Ltd |BHARATFORG |200 | |Bharti Tele-Ventures Ltd |BHARTI |1000 | |Bharat Heavy Electricals Ltd. |BHEL |300 | |Bharat Petroleum Corporation Ltd. |BPCL |550 | |Cadila Healthcare Limited |CADILAHC 500 | |Canara Bank |CANBK |1600 | |Century Textiles Ltd |CENTURYTEX |850 | |Chennai Petroleum Corp Ltd. |CHENNPETRO |950 | |Cipla Ltd. |CIPLA |1000 | |Kochi Refineries Ltd |COCHINREFN |1300 | |Colgate Palmolive (I) Ltd. COLGATE |1050 | |Dabur India Ltd. |DABUR |1800 | |GAIL (India) Ltd. |GAIL |1500 | |Great Eastern Shipping Co. Ltd. |GESHIPPING |1350 | |Glaxosmithkline Pharma Ltd. |GLAXO |300 | |Grasim Industries Ltd. |GRASIM |175 | |Gujarat Ambuja Cement Ltd. GUJAMBCEM |550 | |HCL Technologies Ltd. |HCLTECH |650 | |Housing Development Finance Corporation Ltd. |HDFC |300 | |HDFC Bank Ltd. |HDFCBANK |400 | |Hero Honda Motors Ltd. |HEROHONDA |400 | |Hindalco Industries Ltd. |HINDALC0 |150 | |Hindustan Lever Ltd. HINDLEVER |2000 | |Hindustan Petroleum Corporation Ltd. |HINDPETRO |650 | |ICICI Bank Ltd. |ICICIBANK |700 | |Industrial development bank of India Ltd. |IDBI |2400 | |Indian Hotels Co. Ltd. |INDHOTEL |350 | |Indian Rayon And Industries Ltd | INDRAYON |500 | |Infosys Technologies Ltd. INFOSYSTCH |100 | |Indian Overseas Bank |IOB |2950 | |Indian Oil Corporation Ltd. |IOC |600 | |ITC Ltd. |ITC |150 | |Jet Airways (India) Ltd. |JETAIRWAYS |200 | |Jindal Steel & Power Ltd |JINDALSTEL |250 | |Jaiprakash Hydro-Power Ltd. JPHYDRO |6250 | |Cummins India Ltd |KIRLOSKCUM |1900 | |LIC Housing Finance Ltd |LICHSGFIN |850 | |Mahindra & Mahindra Ltd. |M&M |625 | |Matrix La boratories Ltd. |MATRIXLABS |1250 | |Mangalore Refinery and Petrochemicals Ltd. MRPL |4450 | |Mahanagar Telephone Nigam Ltd. |MTNL |1600 | |National Aluminium Co. Ltd. |NATIONALUM |1150 | |Neyveli Lignite Corporation Ltd. |NEYVELILIG |2950 | |Nicolas Piramal India Ltd |NICOLASPIR |950 | |National Thermal Power Corporation Ltd. NTPC |3250 | |Oil & Natural Gas Corp. Ltd. |ONGC |300 | |Oriental Bank of Commerce |ORIENTBANK |600 | |Patni Computer System Ltd |PATNI |650 | |Punjab National Bank |PNB |600 | |Ranbaxy Laboratories Ltd. RANBAXY |200 | |Reliance Energy Ltd. |REL |550 | |Reliance Capital Ltd |RELCAPITAL |1100 | |Reliance Industries Ltd. |RELIANCE |600 | |Satyam Computer Services Ltd. SATYAMCOMP |600 | |State Bank of India |SBIN |500 | |Shipping Corporation of India Ltd. |SCI |1600 | |Siemens Ltd |SIEMENS |150 | |Sterlite Industries (I) Ltd |STER |350 | |Sun Pharmaceuticals India Ltd. SUNPHARMA |450 | |Syndicate Bank |SYNDIBANK |3800 | |Tata Chemicals Ltd |TATACHEM |1350 | |Tata Consultancy Services Ltd |TCS |250 | |Tata Power Co.Ltd. |TATAPOWER |800 | |Tata Tea Ltd. |TATATEA |550 | |Tata Motors Ltd. |TATAMOTORS |825 | |Tata Iron and Steel Co. Ltd. |TISCO |675 | |Union Bank of India |UNIONBANK |2100 | |UTI Bank Ltd. UTIBANK |900 | |Vijaya Bank |VIJAYABANK |3450 | |Videsh Sanchar Nigam Ltd |VSNL |1050 | |Wipro Ltd. |WIPRO |300 | |Wockhardt Ltd. |WOCKPHARMA |600 | REGULATORY FRAMEWORK:The trading of derivatives is governed by the provisions contained in the SC ( R ) A, the SEBI Act, the and the regulations framed there under the rules and byelaws of stock exchanges. Regulation for Derivative Trading: SEBI set up a 24 member committed under Chairmanship of Dr. L. C. Gupta develop the appropriate regulatory framework for derivative trading in India. The committee submitted its report in March 1998. On May 11, 1998 SEBI accepted the recommendations of the committee and approved the phased introduction of Derivatives trading in India beginning with Stock Index F utures.SEBI also approved he â€Å"Suggestive bye-laws† recommended by the committee for regulation and control of trading and settlement of Derivatives contracts. The provisions in the SC (R) A govern the trading in the securities. The amendment of the SC (R) A to include â€Å"DERIVATIVES† within the ambit of ‘Securities’ in the SC (R ) A made trading in Derivatives possible within the framework of the Act. 1. Any exchange fulfilling the eligibility criteria as prescribed in the L. C. Gupta committee report may apply to SEBI for grant of recognition under Section 4 of the SC (R) A, 1956 to start Derivatives Trading.The derivatives exchange/segment should have a separate governing council and representation of trading / clearing members shall be limited to maximum of 40% of the total members of the governing council. The exchange shall regulate the sales practices of its members and will obtain approval of SEBI before start of Trading in any derivative co ntract. 2. The exchange shall have minimum 50 members. 3. The members of an existing segment of the exchange will not automatically become the members of the derivative segment. The members of the derivative segment need to fulfill the eligibility conditions as lay down by the L.C. Gupta Committee. 4. The clearing and settlement of derivates trades shall be through a SEBI approved Clearing Corporation / Clearing house. Clearing Corporation / Clearing House complying with the eligibility conditions as lay down By the committee have to apply to SEBI for grant of approval. 5. Derivatives broker/dealers and Clearing members are required to seek registration from SEBI. 6. The Minimum contract value shall not be less than Rs. 2 Lakh. Exchanges should also submit details of the futures contract they purpose to introduce. 7.The trading members are required to have qualified approved user and sales person who have passed a certification programme approved by SEBI. FUTURES DEFINITION: A Futur es contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. To facilitate liquidity in the futures contract, the exchange specifies certain standard features of the contract. The standardized items on a futures contract are: ? Quantity of the underlying ? Quality of the underlying ? The date and the month of delivery ? The units of price quotations and minimum price change ? Locations of settlementTYPES OF FUTURES: On the basis of the underlying asset they derive, the futures are divided into two types: ? Stock futures: The stock futures are the futures that have the underlying asset as the individual securities. The settlement of the stock futures is of cash settlement and the settlement price of the future is the closing price of the underlying security. ? Index futures: Index futures are the futures, which have the underlying asset as an Index. The Index futures are also cash settled. The settlement price of the Inde x futures shall be the closing value of the underlying index on the expiry date of the contract.Parties in the Futures Contract: There are two parties in a future contract, the Buyer and the Seller. The buyer of the futures contract is one who is LONG on the futures contract and the seller of the futures contract is one who is SHORT on the futures contract. The pay off for the buyer and the seller of the futures contract are as follows. PAYOFF FOR A BUYER OF FUTURES: [pic] CASE 1: The buyer bought the future contract at (F); if the futures price goes to E1 then the buyer gets the profit of (FP). CASE 2: The buyer gets loss when the future price goes less than (F), if the futures price goes to E2 then the buyer gets the loss of (FL).PAYOFF FOR A SELLER OF FUTURES: [pic] F – FUTURES PRICE E1, E2 – SETTLEMENT PRICE. CASE 1: The Seller sold the future contract at (f); if the futures price goes to E1 then the Seller gets the profit of (FP). CASE 2: The Seller gets loss when the future price goes greater than (F), if the futures price goes to E2 then the Seller gets the loss of (FL). MARGINS: Margins are the deposits, which reduce counter party risk, arise in a futures contract. These margins are collected in order to eliminate the counter party risk. There are three types of margins: Initial Margin:Whenever a futures contract is signed, both buyer and seller are required to post initial margin. Both buyer and seller are required to make security deposits that are intended to guarantee that they will infact be able to fulfill their obligation. These deposits are Initial margins and they are often referred as performance margins. The amount of margin is roughly 5% to 15% of total purchase price of futures contract. Marking to Market Margin: The process of adjusting the equity in an investor’s account in order to reflect the change in the settlement price of futures contract is known as MTM Margin.Maintenance margin: The investor must keep the fut ures account equity equal to or greater than certain percentage of the amount deposited as Initial Margin. If the equity goes less than that percentage of Initial margin, then the investor receives a call for an additional deposit of cash known as Maintenance Margin to bring the equity up to the Initial margin. Role of Margins: The role of margins in the futures contract is explained in the following example. S sold a Satyam February futures contract to B at Rs. 300; the following table shows the effect of margins on the contract.The contract size of Satyam is 1200. The initial margin amount is say Rs. 20000, the maintenance margin is 65% of Initial margin. |DAY |PRICE OF SATYAM |EFFECT ON BUYER (B) |EFFECT ON SELLER (S) |REMARKS | | | |MTM |MTM | | | | |P/L |P/L | | | | |Bal. in Margin |Bal. n Margin | | | | | | | | |1 | | | | | | | | | |Contract is entered and| | |300. 00 | | |initial margin is | | | | | |deposited. |2 | | | | | | | | | | | | | |+13,200 | | | | | | |-13,200 |B got profit and S got | | |311(price increased) | |+13,200 |loss, S deposited | |3 | | | |maintenance margin. | | | | | | | | | | | |B got loss and | | | | | |deposited maintenance | |4 | |-28,800 | |margin. | | |+15,400 |+28,800 | | | | | | | | | |287 | | |B got profit, S got | | | | | |loss. Contract settled| | | | | |at 305, totally B got | | | |+21,600 | |profit and S got loss. | | | |-21,600 | | | | | | | | | |305 | | | | Pricing the Futures: The fair value of the futures contract is derived from a model known as the Cost of Carry model. This model gives the fair value of the futures contract. Cost of Carry Model: F=S (1+r-q) t Where F – Futures Price S – Spot price of the Underlying r – Cost of Financing q – Expected Dividend Yield T – Holding Period. FUTURES TERMINOLOGY: Spot price: The price at which an asset trades in the spot market. Futures price: The price at which the futures contract trades in the futures market.Contract cycle: The period over which a contract trades. The index futures contracts on the NSE have one-month, two-months and three-month expiry cycles which expire on the last Thursday of the month. Thus a January expiration contract expires on the last Thursday of January and a February expiration contract ceases trading on the last Thursday of February. On the Friday following the last Thursday, a new contract having a three-month expiry is introduced for trading. Expiry date: It is the date specified in the futures contract. This is the last day on which the contract will be traded, at the end of which it will cease to exist. Contract size:The amount of asset that has to be delivered under one contract. For instance, the contract size on NSE’s futures market is 200 Nifties. Basis: In the context of financial futures, basis can be defined as the futures price minus the spot price. There will be a different basis for each delivery month for each contract. In a normal market, basis will be positive. This reflects that futures prices normally exceed spot prices. Cost of carry: The relationship between futures prices and spot prices can be summarized in terms of what is known as the cost of carry. This measures the storage cost plus the interest that is paid to finance the asset less the income earned on the asset. Open Interest:Total outstanding long or short positions in the market at any specific time. As total long positions for market would be equal to short positions, for calculation of open interest, only one side of the contract is counted. OPTIONS DEFINITION: Option is a type of contract between two persons where one grants the other the right to buy a specific asset at a specific price within a specified time period. Alternatively the contract may grant the other person the right to sell a specific asset at a specific price within a specific time period. In order to have this right, the option buyer has to pay the seller of the option premium. The assets on which optio ns can be derived are stocks, commodities, indexes etc.If the underlying asset is the financial asset, then the options are financial options like stock options, currency options, index options etc, and if the underlying asset is the non-financial asset the options are non-financial options like commodity options. PROPERTIES OF OPTIONS: Options have several unique properties that set them apart from other securities. The following are the properties of options: ? Limited Loss ? High Leverage Potential ? Limited Life PARTIES IN AN OPTION CONTRACT: 1. Buyer of the Option: The buyer of an option is one who by paying option premium buys the right but not the obligation to exercise his option on seller/writer. . Writer/Seller of the Option: The writer of a call/put options is the one who receives the option premium and is there by obligated to sell/buy the asset if the buyer exercises the option on him. . TYPES OF OPTIONS: The options are classified into various types on the basis of var ious variables. The following are the various types of options: I) On the basis of the Underlying asset: On the basis of the underlying asset the options are divided into two types: ? INDEX OPTIONS: The Index options have the underlying asset as the index. ? STOCK OPTIONS: A stock option gives the buyer of the option the right to buy/sell stock at a specified price.Stock options are options on the individual stocks, there are currently more than 50 stocks are trading in this segment. II. On the basis of the market movement: On the basis of the market movement the options are divided into two types. They are: ? CALL OPTION: A call options is bought by an investor when he seems that the stock price moves upwards. A call option gives the holder of the option the right but not the obligation to buy an asset by a certain date for a certain price. ? PUT OPTION: A put option is bought by an investor when he seems that the stock price moves downwards. A put option gives the holder of the op tion right but not the obligation to sell an asset by a certain date for a certain price. III. On the basis of exercise of Option:On the basis of the exercising of the option, the options are classified into two categories. ? AMERICAN OPTION: American options are options that can be exercised at any time up to the expiration date, most exchange-traded options are American. ? EUROPEAN OPTION: European options are options that can be exercised only on the expiration date itself. European options are easier to analyze than American options. PAY-OFF PROFILE FOR BUYER OF A CALL OPTION: The pay-off of a buyer options depends on the spot price of the underlying asset. The following graph shows the pay-off of buyer of a call option: S-Strike priceOTM – Out of the Money SP -Premium/LossATM – At the MoneyE1 – Spot price 1 ITM – In The Money E2 – Spot price 2 SR – profit at spot price E1 CASE 1: (Spot price > Strike Price) As the spot price (E1) of the underlying asset is more than strike price (S). The buyer gets the profit of (SR), if price increases more than E1 than profit also increase more than SR. CASE 2: (Sport price < Strike Price) As the spot price (E2) of the underlying asset is less than strike price (s). The buyer gets loss of (SP), if price goes down less than E2 than also his loss is limited to his premium (SP). PAY – OFF PROFILE FOR SELLER OF A CALL OPTION:The pay-off of seller of the call option depends on the spot price of the underlying asset. The following graph shows the pay-off of seller of a call option: [pic] S-Strike priceITM – In the Money SP – Premium/profitATM – At the Money E1-Spot price 1OTM – Out of The Money E2 -Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S). The seller gets the profit of (SP), if the price decreases less than E1 than also profit of the seller does not exceed (SP). CASE 2: (Spot price > Strike price) As the spot price (E2) of the underlying asset is more than strike price (S).The seller gets loss of (SR), if price goes more less than E2 than the loss of the seller also increase more than (SR). PAY-OFF PROFILE FOR BUYER OF A PUT OPTION: The payoff of buyer of the option depends on the spot price of the underlying asset. The following graph shows the pay off of the buyer of a call option: [pic] S-Strike priceITM-In The Money SP-Premium/profitOTM-Out of The Money E1-Spot price 1ATM-At The Money E2-Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S). The buyer gets the profit of (SR), if price decreases less than E1 than the profit also increases more than (SR). CASE 2: (Spot price > Strike price)As the spot price (E2) of the underlying asset is more than strike price (s), the buyer gets loss of (SP), if price goes more than E2 than the loss of the buyer is limited to his premium (SP). PAY-OFF PROFILE FOR SELLER OF A PUT OPTION: The pay off of seller of the option depends on the spot price of the underlying asset. The following graph shows the pay-off of seller of a put option: [pic] S-Strike priceITM-In The Money SP-Premium/profitATM-At The Money E1-Spot price 1OTM-Out of The Money E2-Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S), the seller gets the loss of (SR), if price decreases less than E1 than the loss also increases more than (SR). CASE 2: (Spot price > Strike price)As the spot price (E2) of the underlying asset is more than strike price (S), the seller gets profit of (SP), if price goes more than E2 than the profit of the seller is limited to his premium (SP). FACTORS AFFECTING THE PRICE OF AN OPTION: The following are the various factors that affect the price of an option. They are: Stoc k price: The pay-off from a call option is the amount by which the stock price exceeds the strike price. Call options therefore become more valuable as the stock price increases and vice versa. The pay-off from a put option is the amount; by which the strike price exceeds the stock price. Put options therefore become more valuable as the stock price increases and vice versa. Strike price:In the case of a call, as the strike price increases, the stock price has to make a larger upward move for the option to go in-the –money. Therefore, for a call, as the strike price increases, options become less valuable and as strike price decreases, options become more valuable. Time to expiration: Both Put and Call American options become more valuable as the time to expiration increases. Volatility: The volatility of n a stock price is a measure of uncertain about future stock price movements. As volatility increases, the chance that the stock will do very well or very poor increases. Th e value of both Calls and Puts therefore increase as volatility increase.Risk-free interest rate: The put option prices decline as the risk – free rate increases where as the prices of calls always increase as the risk – free interest rate increases. Dividends: Dividends have the effect of reducing the stock price on the ex dividend date. This has a negative effect on the value of call options and a positive affect on the value of put options. PRICING OPTIONS The Black Scholes formulas for the prices of European Calls and puts on a non-dividend paying stock are: CALL OPTION: C = SN (D1)-Xe-rtN(D2) PUT OPTION: P = Xe-rtN(-D2)-SN (-D2) C – VALUE OF CALL OPTION S – SPOT PRICE OF STOCK X – STRIKE PRICE r – ANNUAL RISK FREE RETURN – CONTRACT CYCLE D1 – (ln(s/x) +(r+ )/2) t)/ D2 – D1- Options Terminology: Strike Price: The price specified in the options contract is known as the Strike price or Exercise price. Option Premium: O ption premium is the price paid by the option buyer to the option seller. Expiration Date: The date specified in the options contract is known as the expiration date. In-The-Money Option: An in the money option is an option that would lead to a positive cash inflow to the holder if it is exercised immediately. At-The-Money Option: An at the money option is an option that would lead to zero cash flow if it is exercised immediately. Out-Of-The-Money Option:An out of the money option is an option that would lead to a negative cash flow if it is exercised immediately. Intrinsic Value of an Option: The intrinsic value of an option is ITM, if option is ITM. If the option is OTM, its intrinsic value is ZERO. Time Value of an Option: The time value of an option is the difference between its premium and its intrinsic value. DESCRIPTION OF THE METHOD: The following are the steps involved in the study. 1. Selection of the scrip: The scrip selection is done on a random basis and the scrip selec ted is RELIANCE COMMUNICATIONS. The lot size of the scrip is 500. Profitability position of the option holder and option writer is studied. 2. Data collection:The data of the RELIANCE COMMUNICATIONS has been collected from the â€Å"The Economic Times† and the internet. The data consists of the March contract and the period of data collection is from 30th December 2008 to 31st January 2008. 3. Analysis: The analysis consists of the tabulation of the data assessing the profitability positions of the option holder and the option writer, representing the data with graphs and making the interpretations using the data. ANALYSIS ANALYSIS The objective of this analysis is to evaluate the profit/loss position of option holder and option writer. This analysis is based on the sample data, taken RELIANCE COMMUNICATIONS scrip. This analysis considered the March ending contract of the SBI.The lot size of SBI is 500. The time period in which this analysis is done is from 30/12/2007 To 31/0 1/2008 Price of SBI in the Cash Market. |DATE |MARKET PRICE | | | | |30-Dec-07 |685. 1 | |31-Dec-07 |714. 65 | |1-Jan-08 |695. 6 | |2-Jan-08 |706. 4 | |3-Jan-08 |717. 1 | |4-Jan-08 |713. 45 | |7-Jan-08 |726. 6 | |8-Jan-08 |724. 05 | |9-Jan-08 |720. 85 | |10-Jan-08 |742. 1 | |11-Jan-08 |736. | |14-jan-08 |734. 1 | |15-Jan-08 |731. 75 | |16-Jan-08 |728 | |17-Jan-08 |726. 2 | |18-Jan-08 | | | |727. 8 | | | | |21-Jan-08 |722. 7 | |22-Jan-08 |693. 25 | |23-Jan-08 |657. 7 | |24-Jan-08 |664. 4 | |28-Mar-08 |665. 6 | |29-Jan-08 |641. 7 | |30-Jan-08 |661. 05 | |31-Jan-08 |654. 8 | pic] The closing price of SBI at the end of the contract period is 654. 80 and this is considered as settlement price. The following table explains the amount of transaction between option holder and option writer. ? The first column explains the trading date. ? The second column explains the market price in cash segment on that date. ? The call column explains the call/put options which are considered. Every call/ put has three sub columns. ? The first column consists of the premium value per share of the contracts, second column consists of the volume of the contract, and the third column consists of total premium value paid by the buyer. ?NET PAYOFF FOR CALL OPTION HOLDERS AND WRITERS |MARKET PRICE |CALLS |VOLUME (‘000) |PREMIUM (‘000) |PROFIT TO HOLDER|NET PROFIT TO |NET PROFIT TO | | | | | |(‘000) |HOLDER (‘000) |BUYER (‘000) | | | | | | | | | |654. 8 |640 |199. 5 |3634. 15 |2952. 6 |-681. 55 |681. 55 | |654. 8 |660 |1463 |21600. 35 |0 |-21600. 35 |21600. 35 | |654. |680 |2008 |51831. 53 |0 |-51831. 525 |51831. 525 | |654. 8 |700 |3297 |85603. 45 |0 |-85603. 45 |85603. 45 | |654. 8 |720 |3796. 5 |74881. 93 |0 |-74881. 925 |74881. 925 | |654. 8 |740 |2309. 5 |30208. 4 |0 |-30208. 4 |30208. 4 | OBSERVATIONS AND FINDINGS: ? Six call options are considered with six different strike prices. ? The current market price on the expiry date is Rs. 654. 80 and this is c onsidered as final settlement price. The premium paid by the option holders whose strike price is far and greater than the current market price have paid high amounts of premium than those who are near to the current market price. ? The call option holders whose strike price is less than the current market price are said to be In-The-Money. The calls with strike price 640 are said to be In-The-Money, since, if they exercise they will get profits. ? The call option holders whose strike price is less than the current market price are said to be Out-Of-The-Money. The calls with strike price of 660, 680,700,720,740 are said to be Out-Of-The-Money, since, if they exercise, they will get losses. [pic] FINDINGS:The premium of the options with strike price of 700 and 720 is high, since most of the period of the contract the cash market is moving around 700 mark. [pic] FINDINGS: ? The contracts with strike price 660, 680, 700, 720, 740 get no profit, since their strike price is more than the settlement price. ? The contract with strike price 640 gets the profit. NET PAY OFF OF PUT OPTION HOLDERS AND WRITERS. |MARKET PRICE |PUTS |VOLUME (‘000) |PREMIUM (‘000) |PROFIT TO HOLDER |NET PROFIT TO HOLDER |NET PROFIT TO WRITER| | | | | |(‘000) |(‘000) |(‘000) | | | | | | | | | |654. |600 |25 |47. 625 |0 |-47. 625 |47. 625 | |654. 8 |640 |323. 5 |993. 5 |0 |-993. 5 |993. 5 | |654. 8 |660 |1239. 5 |9506. 575 |6445. 4 |-3061. 175 |3061. 175 | |654. 8 |680 |1399. 5 |21894 |35267. 4 |13373. 4 |-13373. 4 | |654. 8 |700 |1858 |30871. 28 |83981. 6 |53110. 325 |-53110. 325 | |654. |720 |1468. 5 |23727. 83 |95746. 2 |72018. 375 |-72018. 375 | | | | | | | | | OBSERVATIONS AND FINDINGS: ? Six put options are considered with six different strike prices. ? The current market price on the expiry date is Rs. 654. 80 and this is considered as the final settlement price. ? The premium paid by the option holders whose strike price is far and greater than the current market price have paid high amount of premium than those who are near to the current market price. The put option holders whose strike price is more than the current market price are said to be In-The-Money. The puts with strike price 660,680,700,720 are said to be In-The-Money, since, if they exercise they will get profits. ? The put option holders whose strike price is less than the current market price are said to be Out-Of-The-Money. The puts with strike price of 600,640 are said to be Out-Of-The-Money, since, if they exercise their puts, they will get losses. [pic] FINDINGS: ? The premium of the option with strike price 700 is higher when compared to other strike prices. This is because of the movement of the cash market price of the SBI between 640 and 720. [pic] FINDINGS: The put option holders whose strike price is more than the settlement price are In-The-Money. ? The put options whose strike price is less than the settlement price are Out-Of-The-Money. DATA OF SBI THE FUT URES OF THE JANUARY MONTH |DATE |FUTURES CLOSING PRICE (Rs. ) |CASH CLOSING PRICE (Rs. ) | | | | | |30-Dec-07 |689. 6 |685. 1 | |31-Dec-07 |720. 65 |714. 65 | |1-Jan-08 |700. 5 |695. 6 | |2-Jan-08 |710. 9 |706. 4 | |3-Jan-08 |720. 85 |717. 1 | |4-Jan-08 |716. 85 |713. 45 | |7-Jan-08 |729. 2 |726. 6 | |8-Jan-08 |728. 25 |724. 05 | |9-Jan-08 |723. 35 |720. 5 | |10-Jan-08 |745. 3 |742. 1 | |11-Jan-08 |741. 35 |736. 9 | |14-Jan-08 |738. 95 |734. 1 | |15-Jan-08 |735. 7 |731. 75 | |16-Jan-08 |733. 15 |728 | |17-Jan-08 |730. 75 |726. 2 | |18-Jan-08 |732. |727. 8 | |21-Jan-08 |725. 25 |722. 7 | |22-Jan-08 |695 |693. 25 | |23-Jan-08 |660. 1 |657. 7 | |24-Jan-08 |666. 7 |664. 4 | |28-Jan-08 |667. 75 |665. 6 | |29-Jan-08 |642. 7 |641. 7 | |30-Jan-08 |662. 5 |661. 05 | |31-Jan-08 |655. 95 |654. 8 | [pic] OBSERVATIONS AND FINDINGS: The cash market price of the SBI is moving along with the futures price. ? If the buy price of the futures is less than the settlement price, then the buyer of the f utures get profit. ? If the selling price of the futures is less than the settlement price, then the seller incur losses. SUMMARY, CONCLUSIONS AND RECOMMENDATINONS SUMMARY ? Derivatives market is an innovation to cash market. Approximately its daily turnover reaches to the equal stage of cash market. Presently the available scrips in futures are 89 and in options segment are 62. ? In cash market the profit/loss of the investor depends on the market price of the underlying asset. The investor may incur huge profits or he may incur huge losses. But in derivatives segment the investor enjoys huge profits with limited downside. ? In cash market the investor has to pay the total money, but in derivatives the investor has to pay premiums or margins, which are some percentage of total money. ? Derivatives are mostly used for hedging purpose. ? In derivative segment the profit/loss of the option holder/option writer is purely depended on the fluctuations of the underlying asset. CONCLUSIONS In bullish market the call option writer incurs more losses so the investor is suggested to go for a call option to hold, where as the put option holder suffers in a bullish market, so he is suggested to write a put option. ? In bearish market the call option holder will incur more losses so the investor is suggested to go for a call option to write, where as the put option writer will get more losses, so he is suggested to hold a put option. ? In the above analysis the market price of State Bank of India is having low volatility, so the call option writers enjoy more profits to holders. RECOMMENDATIONS ? The derivative market is newly started in India and it is not known by every investor, so SEBI has to take steps to create awareness among the investors about the derivative segment. In order to increase the derivatives market in India, SEBI should revise some of their regulations like contract size, participation of FII in the derivatives market. ? Contract size should be minimiz ed because small investors cannot afford this much of huge premiums. ? SEBI has to take further steps in the risk management mechanism. ? SEBI has to take measures to use effectively the derivatives segment as a tool of hedging. BIBLIOGRAPHY BIBLIOGRAPHY BOOKS: FUTURES AND OPTIONS – N. D. VOHRA, B. R. BAGRI DERIVATIVES CORE MODULE WORKBOOK – NCFM MATERIAL FUTURES AND OPTIONS – R. MAHAJAN WEBSITES: www. nseindia. com www. equitymaster. com www. peninsularonline. com NEWS EDITIONS: THE ECONOMIC TIMES BUSINESS LINE