hi Gaurabh,
i dont have the project on derivatives but can provide u with the appropriate information on derivative.
Here is some information on Derivatives:
Derivatives, Options & Futures
1 Derivatives
Derivatives are hedging instruments to be used against price risk. Securities providing payoffs that depend on or are contingent on the values of other assets such as a commodity price, bond and stock price, or market index values. The underlying instrument in any derivative instrument is the physical asset or a security.
2 Futures
Futures contract is a firm legal commitment between a buyer and a seller in which they agree to exchange something at a specified price at the end of a designated period. The buyer agrees to take delivery of something and pay the agreed price and the seller agrees to make delivery for the agreed consideration.
3 Index
An Index is a representative of a set, and is generally the indicator of status of the set. In a stock market context, Index is an indicator of the broad market. For instance, by tracking the changes of the BSE Sensex, NSE Nifty one can effectively gauge market moods in India. Any Index is an average of its constituents. For example, the BSE Sensex is a weighted average of prices of 30 select stocks, where the weight is the market capitalization of individual stocks. Market capitalization is the product of stock price and number of shares issued by the company.
4 Index futures
Index futures are future contracts where the underlying asset is the Index. This is of great help when one wants to take a position on market movements. Suppose one feels that the market is bullish and the Sensex would cross 5,000 points. Instead of buying shares that constitute the Index one can buy the market by taking a position on the Index future.
5 Difference between the Forward and Future Contracts
Forward contracts are Over the counter (OTC) contracts whose terms are agreed upon by the counter parties. Whereas Futures are traded on exchanges where the terms are standardized by the exchange.
6 Options
An option is the right, but not the obligation, in the hands of the holder, to buy or sell an asset at a particular price on or before a particular date. This is different from futures wherein there is an obligation on both the buyer and seller to perform the contract.
7 Call and Put Options
A call option gives the holder the right to buy while a put gives him the right to sell the underlying security / asset.