Does cultural economics affect country’s competitiveness?

Abstract

A derivative is a financial contract type whose value is based on an underlying asset, group of assets, or benchmark. The present study analyses the growth of exchange traded derivative market traded on the National Stock Exchange of India Limited (NSE). It has been found that all the sampled derivative instruments have grown significantly over the period of 16 year ranging from 2000 to 2017 Further, the comparative analysis of four exchange traded derivatives instruments, namely indexed futures, stock futures, indexed options and stock options with the help of various descriptive statistical tools. Ith has been observed taht volume of index futures have grown at the highest rate with CAGR of 59.94 percent during the sample period, followed by index options (45.22 percent), stock futures (43.10%) and stock options (33.14 percent). Stock options have least but most variant average turnover, however, stock futures have highest and the second least variant average turnover. The volume of Indexed futures grow at highest rate of percentage with CAGR 59.54%, followed by indexes options (45.22), stock futures (43.10%) and stock options (33.14%). The findings are quite useful for investors as well as policymakers.

Keyword : Derivatives, index futures, stock futures, index options, stock options, CAGR