Derivatives and Risk Management Report for Elite Copper Corporation

This report presents a risk management consultation for Elite Copper Corporation, addressing potential risks associated with decisions to increase cash flows, company size, and valuation. It covers definitions of key terms and explores various risk management strategies, including the use of futures contracts, particularly copper and equity futures. The report discusses optimal hedge ratios, explaining how to calculate and apply them to mitigate price volatility. Furthermore, it analyzes historical spot and futures prices over a five-year period, illustrating market trends and fluctuations. The analysis includes the graphical representation of the market booms, recessions, recoveries, and troughs. The report offers insights into the short position strategy and the benefits of using financial futures, such as US treasury futures, for hedging. The report aims to provide a detailed overview of the risks and the possible strategies for the company to make informed decisions to safeguard itself from the risks.

Running head: DERIVATIVES 1
Risk management consulting report to elite Copper Corporation
Student’s name
Name of the university
Author’s note

DERIVATIVES 2
Executive summary
This paper is a short consultation report to Mr Richard Morris and the elite copper
corporation. It is specifically a risk management report written in response to the raised points of
concern. The report covers aspects regarding the potential risks that the copper corporation is
likely to encounter while pursuing the intend decisions to increase its cash flows, company size
and valuation. Therefore the report highlights the various aspects of concern that need to be
critically assessed and analyzed before undertaking such decisions. Within the report, alternative
possible strategies that have to be undertaken are covered. These will be used guidelines or areas
of references when making company decisions. The report covers definitions and explanations of
important terms and concepts. All such explanations and elaborations are aimed at providing a
more informed
Introduction
The risk management report written to elite Copper Corporation is a guiding document
providing an insight into the aspects surrounding derivatives. The report goes further to provide
more detailed knowledge and understanding the types of risks that the company is exposed to.
The general discussion of the report, therefore, focuses around risk management strategies, the
positions to be taken by the firm in the copper mining industry, identifying these risks as well as
their impact on the firm. A risk is a possibility of or presence of a chance of losing something of
value. It can, therefore, be through damage, injury, liability and any other negative deviation
from the anticipated or intended result. In terms of finance, therefore, risk refers to the possibility
that a return on an investment will be lower or less than the expected return. Financial risk is
therefore subdivided into different categories. These may include risks such as capital risks,
economic risks, liquidity risks reinvestment risks and so many other types of risks. This report
will, therefore, provide explanations concerning some of the above types of risks as required for
better decision-making purposes.

DERIVATIVES 3
Discussion of the report
The futures and position that elite copper should use when hedging against exposure
Futures are derivative financial agreements the give contracting parties the duty to trade
or carry out transactions on a given asset or security at a specified future point in time and price.
When dealing with futures, the buyer or seller is obliged to either purchase or sell the asset at an
agreed price at the time of maturity. This, therefore, eliminates the possibility of refusal to buy or
sell at the maturity date in the futures market. The futures market, on the other hand, refers to an
auction or bid market through buyers and sellers trade commodities at predetermined prices at
maturity. The futures market includes the New York mercantile exchange, Kansas City Board of
trade, the Chicago mercantile exchange among others (Chen, 2019).
Among the possible types of futures that the firm can take include the equity futures. The
most immediate futures that elite copper should trade-in are the copper futures, equity futures are
as well an important alternative that the company can use when hedging against future risk.
Because the copper market prices are highly volatile, elite Copper Corporation needs to
effectively protect against possibilities of unfavourable price fluctuations. Equity futures act as a
protective strategy by creating high leverages to the firm. Additionally, equity futures would
provide the company with an option to choose a position before markets are opened or closed.
Elite Copper Corporation should use financial futures such as the US treasury futures (Hargrave,
2019). The benefit associated with using such futures is that the dollar is a global currency that is
used on a global scale. Furthermore, because the dollar is a relatively stable currency, the firm is
relatively safeguarded from the highly volatile market conditions within the metals market. This,
therefore, implies that the value of the firm’s commodity on the financial market is safeguarded
from risks arising out of price volatilities. Since elite Copper Corporation is seeking to safeguard
itself from prices volatilities, and because it is a mining company, the futures position it can take
is short. The short position, therefore, means that elite company will enter into a futures contract
with any other buyer. The short futures position is, therefore, the act of entering into a binding
contract for the sale of a commodity item at a predetermined price at maturity. Therefore, the
short position would require Elite Corporation to sell copper to a buyer at an agreed price in the
future.

DERIVATIVES 4
Optimal hedge ratio
The minimum variance hedge ratio is also known as the optimal hedge ratio is a method
that is used to evaluate the correlation between the variance in the value of an asset or liability
and that of the instrument used for hedging (Chen, 2019). This concept is commonly used by
businesses or by investors to protect against threats and exposure. However, since there is no
perfect hedge, financial analysts need to calculate and determine the least variable optimal
hedge. This is specifically carried out to create a tradeoff between the existing exposure to risk
and possible alterations in the value of the underlying security at hand (Sehgal and
Agrawal,2019). Therefore, the formula for determining and calculating the optimal hedge is
given as follows:
h = ρ . σs
σf
Where: h represents the optimal hedge,ρ stands for correlation∧σ is the standard deviation. S is
the spot market price and f is the future market price.
According to the Chicago Mercantile Exchange market, the spot closing and open market prices
are $ 2.6245 and $ 2.6140. The December prices of copper futures are however given as $
2.6315 for the opening and $ 2.6420 for the closing mark. The December prices are used as the
spot prices whereas the December prices are used as the future quotations for this particular task.
It is these prices that are used for calculating the standard deviation of the copper futures when
finding the hedge ratio or optimal hedge.
Assuming that there is a high degree of correlation between the copper futures and copper, the
correlation would, therefore, be about 0.95. And that the spot and future standard deviation of the
in the prices on the market is about 0.3%. Hedge ratio would be 0.95 = 0.95( 0.003
0.0 03).
This method is an important approach that can be used in determining the highest number of
futures agreements that can be bought to acquire a hedge position (Kantox, 2017). This is
therefore calculated as a product of the correlation coefficient existing within the changes in the

DERIVATIVES 5
spot and futures ratios of the standard deviation of future prices. With the optimal hedge ratio
being calculated, it is, therefore, possible to determine the optimal number of contracts that one
can obtain from a contract. This is done by dividing the optimal hedge product ratio together
with the total number of units of a position that is being taken by the size of a single futures
agreement. The number of contracts that one can obtain from a hedging contract can, therefore,
be calculated under the following formula.
The optimal number of contracts = ( ¿ the portfolio
contract ¿ the futures contract ) * h
The historical spot and futures price for the past five years
Fig. 1 represents the historical spot and futures price for the last five years
Source: macro trends. 2019.
Figure 1 an illustration of the spot and futures prices for the last five years. It, therefore,
shows the cyclical trends including the highs and lows on the market. The discussion below is an
explanation of the changes in terms of price volatilities. The graph shows the boom periods,
recessions, recoveries and troughs. Furthermore, the booms reflect price highs whereas the
troughs reflect the price lows. Additionally, a price low refers to the lowest price that an asset

DERIVATIVES 6
can be traded for on the derivatives market. A price high on the other hand can be defined as the
highest price that an individual or trader can pay to purchase a given unit off an assets or security
on the derivatives or stock market. A trough is a point is simply a period when the prices on the
market are performing poorly or very low, a recovery, on the other hand, refers to the situation
when the security prices are beginning to rise. The recession, therefore, represents the period
when prices are falling with time whereas the boom is a time when prices are at their highest
point. With a clear understanding of the technical terms, an explanation of the above graph is
provided below:
According to the graphical illustration, the last quarter of 2014 reflects that the futures
and spot prices were undergoing a recession. This is shown by the fall from a price of $3.20 to a
price slightly below $2.60 during the first quarter of 2015.this fall or recession in the prices
created a trough at a low of an estimated $2.49 during the same period. From such a fall or
recession, the graph further continues to reflect a recovery in the spot and futures prices. This
was however recorded around the second quarter of the year 2015 to an estimated price of $2.87
which is slightly above the $2.80 mark. From such an increase, the curve proceeds with a decline
in the prices creating a record low at an estimated $1.94 in the market. This record low in prices
created the trough din the cyclical futures and spot prices. It was approximately recorded during
the first quarter of the year 2016. This poor performance however continued with a slight
recovery in the prices of the futures and spot exchanges. This can further be illustrated by a
forecast of around $2.33 within the same year of2016. Between the third quarter of 2016 up to
around the first quarter of 2017, the prices, however, reflect a different trend altogether. There is
a seeming tendency of consistency in the prices. This consistent trend in the copper prices is
reflection of a more stable trading environment on the market. Either the demand was equal to
supply or there was no trade at all. This is an implication that the prices were most likely stable
during such periods. This is reflected through the relatively constant level that is maintained
within this period.
Right from the first quarter of 2017, price increases were yet experienced yet again. This
is reflected through the recovery within the first quarter of 2017. The rise from a low of less than
$2.20 shows the increases in the futures and spot prices. During the first quarter there a rise in
the prices which is above $2.60. At this point, a constant trend in the prices is as well

DERIVATIVES 7
experienced on the market. The consistency in the prices continues up to around the second
quarter of 2017 where prices again to a low of around $2.50. Prices however again sharply pick
up to rise to $ 3.30 which is one of the record highs in the prices. This record high is, however,
record in around the last quarter of the year 2017 to show a boom in the prices cycles. At this
point, prices become a bit constant thereby reflecting yet another high of $3.30 in the second
quarter of 2018. From this point, the pries again fall into a recession which consequently
becomes corrected when it reaches $2.65 around the third quarter of 2018. Form this point,
prices slightly recover and fall characterized by minimal volatilities reaching a high of an
estimated $2.95 during the first quarter of 2019. This is however followed by a fall in the prices
to a low of about $2.63 especially within the second quarter of the same year 2019. Therefore
such is a brief explanation of the moving trend in the futures and spot prices for the past five
years on the market. The curve was explained taking into consideration the last quarter of 2014
up to the second quarter of 2019. It further shows that prices on the financial market are
constantly characterized by declines, recoveries and in sometimes points of consistency.
However, all such changes and movements in the prices are highly subjected to several
influencing factors. These may include current information on the market, interest rates, inflation
and so many other factors.
The company’s exposure in pounds of copper
In measuring the company’s exposure, a method known as the delta exposure or dollar
delta will be used. The delta exposure is therefore used to measure the first order of price
sensitivity of a derivatives contract. This takes into account the futures and options. Such
measures are made Concerning the variances in the prices of the underlying assets. This method
is however mostly accurate in circumstances where the portfolio of assets or securities do not
contain options. This should, however, be combined with small changes in the values of
underlying assets. The level of exposure will be 0.05% which is obtained by Lessing the amount
of copper that is hedged form the total amount that the company is holding. This would give an
amount of about 0.6 kilotons at risk of exposure.
Number of copper futures contracts that should be traded

DERIVATIVES 8
To determine the number of contracts that Elite Copper Corporation needs to trade, the notional
value approach will be used for this paper. The notional value, therefore, refers to the total
amount that the total underlying amount of a futures contract or transaction. This value is always
higher than the market value due to concepts of leverage. The term leverage kin this case refers
to the ability to use a small amount of money to have an anticipated control over a larger value or
sum of an underlying asset. The notional value technique is commonly used in the derivatives
market to describe contracts such as the futures, options and other currency markets. The formula
for this method is given as; notional value = size of the contract multiplied by the price of the
underlying security on the market. To find the number of contracts that can be signed the
market volume available of 552 and the annual value of the company together with the 0.95
hedge ratio will be used as the key information (Kenton, 2019).
Therefore, for the elite company the copper contacts that can be made will be obtained as
follows:
= (0.95 * 12 kilotons)/552
= 11.4 kilotons *552
= 6,293 contracts.
Therefore according to the approach used, the elite company will have to sign a total of about
6,293 contracts.
Initial margin requirement of September
An initial margin requirement can be defied a the amount of money that affirm or trader in the
derivatives market should pay to buy or sell a position in a contract. The margin requirement is a
vital concept that is highly necessary especially for traders and investors intending to trade assets
and other securities in the futures market. it is, therefore, an initial deposit that a company such
elite copper corporation should make before signing any futures contract. Additionally, this
initial margin requirement is highly dependent upon the level of price volatility in the market.
The higher the market price volatility, the higher the initial margin requirement that one has to
pay as an initial amount. Similarly, when the price volatilities are low, the margin requirement is
likely to below. This margin requirement is however determined by multiplying the price times
the volume of purchase. For the initial, margin requirement in the September period would be
obtained as follows: IMR = price * volume.
= $2.614*552
= $1,442.928

DERIVATIVES 9
Therefore In September, the initial margin requirement is $ 1,442.928. This implies that an
investor would have to pay such an amount as an initial deposit before signing a futures contract.
Other major risks that elite copper corporation is likely to face
Besides the price risks associated with price volatilities, the elite copper corporation is as well
subjected to several numerous other risks within the market. Among these risks include risks
such as market risks, credit risks, liquidity risks, and counterparty risks. The interconnection
risks are as well part of the risks associated with transacting in the derivatives market. Therefore,
to provide a more informed understanding of the concepts, elaborative explanations are provided
below.
The market risks: market risks can be referred to as those particular risks that are general to all
investors or buyers and sellers in the financial market (Investopedia,2019). Because investors
make decisions based on assumptions and forecasts, there is always a possibility of deviation
from the intended or required returns. For instance, an investor or trader such as the elite copper
corporation would decide on making a technical analysis. However, making a technical analysis
does not fully imply that future trends in prices will be as projected (Yilgor et al, 2016).
Unplanned for events could occur in the shortest period thereby significantly influencing the
operations of the market. It is also important to note that information plays a vital role in
influencing the market trend and behaviour. Therefore a technical analysis may reliably assess
the possibility of events such as the political instabilities within an economy. Since instabilities
can result in financial consequences such as inflation, then this makes market risk an important
factor of consideration.
Liquidity risks: besides the market risks, the elite copper corporation is highly subjected to risks
resulting from liquidity (Marverick, 2018). This type of risks, however, results from an assets’
inability to be traded on the market. For example, the Elite Copper Corporation is subjected to
this type of risk because the company is trading in copper which may not have the ability to be
quickly traded. Such a scenario can consequently result in cases of low liquidity levels thereby
making coppery unmarketable. Because investors prefer trading in assets or securities that highly
liquid, they are most likely to enter into futures contracts involving highly liquid assets or
securities. This would, therefore, imply that the company will not have an effective and reliable
market for its assets. Ultimately due to liquidity risks, the copper prices will decline to low levels
of demand hence low profitability for the company. It is therefore important to take into
consideration the bid and ask spreads to assess the level costs associated.
The counterparty credit risks are as well as other types of risks that the elite company should
consider. Counterparty credit risks are risks that result from the possibilities of defaulting or
breaching the contract. This can be done by either the buyer or seller's refusal to uphold the terms
of the futures contract. Such risks are however most common in the over the counter
transactions. Since the transactions in the over the counter markets are not highly regulated and

DERIVATIVES 10
controlled, the likelihood of defaulting and breach of contracts is significantly very high.
Therefore, if the elite copper corporation is to enter into futures contracts with an over the
counter arrangement, it would present a high level of risks. Such risks can, however, be
controlled if Richard Morris can enter into futures contracts with investors and individuals that
are well known to him. The other possible solution that Richard can use as a way of guarding
against such risks is by entering into contracts that are within highly regulated in the market. For
example, instead of using over the counter arrangements, the company should opt for the
ordinary trade exchanges.
Currency risks: a currency risk is the possibility of loss that results from the exchange
fluctuations that an investor or company trading in the market is exposed to. This normally
appears in circumstances when such an investor is transacting in a foreign currency such as the
dollar ( Caspers et al,2017). The possible fluctuations that may occur due in the market
consequently imply that the underlying value of the assets or securities will as well decline in the
long run. The elite copper corporation would be subjected to such a type of risk when it decides
to trade and sign futures contracts in other foreign currencies other than its domestic currency.
Such currency risks are commonly generated out of changes in the financial market in a country.
For example, if the elite company chose to create a futures contract in using the US dollar
currency, a fall in the interests in the United States would imply that the dollar would have lost
value. The outcome of such a loss in value to due fall in interest rates consequently affects the
value of copper on the derivatives market.
Interconnection risks: interconnection risks are risks that arise out of the reliance on the value
of other underlying assets. Because derivatives derive value for other assets, this creates a close
relationship between two different kinds of markets. The threat here comes from the possibility
of exposure to numerous factors resulting from external conditions happening to the underlying
asset's market. These consequently have a direct impact on the futures and options which at times
is not a favourable outcome. In summary one market significantly influences another market
altogether (Haotanto, 2017).
The upsides and downsides of the recommended strategies
One of the recommendations made to the company is the position to choose. In the report, Mr
Richard is advised to take a short position as one of the recommendations. However, taking a
short position has consequential outcomes that may be unfavourable in the long run. For
instance, if Mr Morris decides to take a short position, then this will likely result in
circumstances such as speculations. These buyers, for example, are likely to consider taking a
short position as speculation and yet the sellers consider this as an approach of hedging (Houllier
and Murphy, 2017). Ultimately this creates a situation of contradictions among the two parties.
The buyers will want to sign a futures contract at very low prices are even low many prices and

DERIVATIVES 11
yet the sellers prefer to sell at higher prices. This creates an exploitative scenario in the market
and hence lowering the value of the assets and profitability especially for the seller.
The other limitation associated with short selling is that it can result in significant losses. Since
the signing futures contracts are binding to all the traders, the possibility of making, the wrong
forecast is very costly especially to the person taking a short position. For example, If Mr
Richard conducted a technical analysis and forecasted a decline in copper prices; he would then
opt for a futures contract that will safeguard him from such a loss. However, this type of
forecasting may not be the actual outcome at the time of maturity. This is very common in cases
where the spot price on the market is higher the agreed-upon price. Mr Richard would be under
obligation to sell out the copper to the buyer at a price much lower than the spot price at the time
of maturity. For example, in case Mr Richard agrees to sell a kiloton of copper at $15,000 at a
given time in December in anticipation that the spot price during such a time will be much less
than $15,000. Unfortunately when the maturity date of December comes the spot price of copper
per kiloton is $20,000. Mr Richard will have made a loss of $5,000 = (20,000-15,000) $ in per
kiloton at such a period. Therefore taking a short position is highly risky.
On the other hand, however, taking a short position can be beneficial to the company. The short
is primarily a hedging tool that is used to protect against future losses and price fluctuations. Due
to uncertainties, the possibility of future returns is subjected to several risks. Risks such as
systematic and unsystematic risks are a potential threat. Therefore for the elite copper
corporation, constant price fluctuations significantly increase the risks of exposure. It is also
important to note that the longer the investment period, the higher the risk of exposure. For a
reason, taking a short position would ultimately lower the risk of exposure in the long run. The
additional importance of short selling plays an important role in generating quick access to
capital and funds.
The recommendation to use the US treasury futures could b associated with risks such as losses
in the value of copper in the long run. Since these futures are traded in a foreign currency, there
is a high possibility of suffering losses in the case the dollar depreciates on the exchange market.
The implication of using such futures is that the company will be subjected to constant
undervalues of the assets in the market. The impacts of such tendencies of undervaluing are
consequential in terms of profitability to the company that intends to increase revenues. The
benefit, however, is that such treasury futures offer high levels of liquidity to the company. This
is important towards generating more income to finance activities yet they are further
characterized by relative levels of security in the long run (CME Group, 2019).
Historical development of the copper commodity futures
The copper commodity futures are standardized exchange agreements through which the
participants in a futures agreement agree to transact with each other specified quantities of
copper an agreed price in the future or the time of maturity. These copper futures can be traded

DERIVATIVES 12
on the market such as The London Metal Exchange, The New York Mercantile Exchange and
The Chicago Mercantile Exchange among other markets. The background and development of
the commodities market is traced back to around the 17th century in Japan, on the contrary, some
sources reveal that in 6000 before, china was already trading in the commodities market
(Abumustafa and AL-Abduljader,2011). However, an organized mode of trading in commodities
started in around the 1840s in America with the establishment of the Chicago Board Of Trade
(CBOT).
During the early twentieth century after the industrial revolution, three was a period of high
levels of technology. This meant that countries such as Britain had the capacity to melt metals
such as copper on a large scale. The capability to smelt this iron, therefore, led to the
development of a major copper deposit area in Chile, North America, and Australia among other
countries. This eased the process of lower-grade ores hence a global explosion in the copper
market. Such reasons for expansion significantly implied that there was a need for a better
trading environment. In around 1993, the creation of the COMEX was under undertaken. This
was to play a primary objective of acting as the futures and options market for metals. Among
such metals include gold, aluminium, silver among others. Effectively there was growth which
ultimately led to a merger forming the New York mercantile exchange which is the world's
largest physical trading platform today. It is such a brief background today forms the
commodities market.
The outlook of the futures commodities market in the coming years
Transacting in the commodities market involves several numerous uncertainties and risks. The
high levels of price volatilities are excessively very unpredictable and therefore one needs to
trade with great caution. Since the market is under significant influence from several factors such
as current information, price changes alone may not be a reliable method of predicting future
trends. For example, if the US-China trade war continues to take place in the next three to five
years, the metal market could as well, continue to dampen (Hong Vo et al, 2018). The
agricultural commodities market, on the other hand, is subjectively under influence resulting
from the changes in the global climate and weather changes. Since the factors that hampered
agricultural commodities have quite stabilized, there is a significant future improvement in the
market. The copper prices according to (Trading Economics, 2019) are expected to fall to an
anticipated price of $2.3876 by the 4th quarter of the year 2020. On the other hand, according to
the world report of 2019, crude oil consumption has been registering relative increases. This is
backed up the 1.1 percentage increase in crude oil early this year. From such a scenario one can
forecast the future of the commodities market will have negligible growth even further in the
coming years (Rubani, 2017). Such improved performances arise out of expansions in crude oil
consumptions in countries such as the United States, China, India. The natural gas market is as
well expected to pick over the coming periods especially in terms of prices. Coal prices, on the
other hand, are a well forecasted to undergo a recovery out of their previous poor performances
of 2018. Generally, looking back at the 2018 period, the commodities market was on a downfall.

DERIVATIVES 13
However, according to the present general outlook and future possible forecasts, the
commodities market is expected to experience improved prospects. Market performance is
however negligible and for certain commodities uncertainties that have significant impacts will
continue to have an influence.
Recommendations
For the elite copper corporation, taking hedging strategies would be the most ideal decision to
make. However, it is not only the prices fluctuations that influence the value of copper as, an
item of trade. Other factors such as the prevailing information, supply and demand among others
also have a significant role in determining the performance of copper on the market. Therefore, if
the company wants to increase cash flows for profitability taking short term contracts would be
an ideal move or strategy in the market. Since longer contracts increase exposure to risks and
threats, the short –term contracts will be a better venture to undertake. It would as well be
imperative for the company to use highly liquid securities. Such contracts can easily be
converted into cash that is necessary for facilitating daily operations such as increasing the
company size both in the long and short runs.
Conclusion
Conclusively, the derivative market is very unpredictable. It is a market characterized by
numerous risks that are both financial and non-financial. Price volatilities are very much constant
and these increase the risks associated with a financial loss. Therefore, the copper corporation
company has to exercise full caution and care when selecting the type of contract to undertake.
On the other and however, deciding to trade in derivatives is one way of protecting against
underlying risks such as price volatilities and so on. Signing futures contracts on the market
would most likely reduce safeguard the company in the long run.

DERIVATIVES 14
References
Chen. J. (2019) Futures Contract. Retrieved from
https://www.investopedia.com/terms/f/futurescontract.asp
Chen.J. (2019) Futures. Retrieved from https://www.investopedia.com/terms/f/futures.asp
CME Group. (2019). The basics of U.S Treasury Futures. Retrieved from
https://www.cmegroup.com/trading/interest-rates/basics-of-us-treasury-futures.html
Haotanto.A.V. (2017). Derivatives: The Risks You Need To Know About. Retrieved from
https://thenewsavvy.com/invest/derivatives/derivatives-risks-to-know/
Hargrave. M. (2019). Futures Market Definition. Retrieved from
https://www.investopedia.com/terms/f/futuresmarket.asp
Investopedia. (2019) How To Calculate The Notional Value Of A Futures Contract. Retrieved
from https://www.investopedia.com/ask/answers/042215/how-can-i-calculate-notional-
value-futures-contract.asp
Kantox. (2017). Minimum Variance Hedge Ratio. Retrieved from
https://www.kantox.com/en/glossary/minimum-variance-hedge-ratio/
Kenton. W. (2019). Hedge Ratio. Retrieved from
https://www.investopedia.com/terms/h/hedgeratio.asp
Marverick.J.B. (2018). What Are The Main Risks Associated With Trading Derivatives?
retrieved from Https://Www.Investopedia.Com/Ask/Answers/070815/What-Are-Main-
Risks-Associated-Trading-Derivatives.Asp
Sehgal, S., Agrawal, J. (2019). Impact of Commodity Tax On Market Liquidity, Volatility, And
Government Revenues: An Empirical Study For India. Retrieved from
https://doi.org/10.1177%2F0256090919826316
Yilgor, A. G., Lidvine, C., Mebounou, C., (2016). The Effect of Futures Contracts On The Stock
Market Volatility: An Application On Istanbul Stock Exchange: Journal Of Business
Economics And Finance. Retrieved from

DERIVATIVES 15
file:///C:/Users/CLIENT/Downloads/Documents/10.17261-Pressacademia.2016321974-
378925.pdf
Caspers, P., Giltinan, P., Lichters, R., Nowaczyk, N., (2017). Forecasting Initial Margin
Requirements- A Model Evaluation. Retrieved from
https://www.researchgate.net/publication/326264811_Forecasting_Initial_Margin_Requir
ements_-_A_Model_Evaluation
Houllier, M., Murphy,D., (2017)Initial Margin Model Sensitivity Analysis And Volatility
Estimation: Journal Of Market Infrastructures. Retrieved from
file:///C:/Users/CLIENT/Downloads/Documents/Initial_margin_model_sensitivity_analy
sis_and_volatility_estimation.pdf
Abumustafa, N. I.,Al- Abduljader, S. T., (2011). Investigating the Implications of Derivative
Securities In Emerging Stock Markets: The Islamic Perspective. Retrieved from
https://link.springer.com/article/10.1057/jdhf.2010.7
Rubani, M. (2017). A Study of Derivative Market In India. Retrieved from
file:///C:/Users/CLIENT/Downloads/Documents/ijbamv7n1spl_17.pdf
Hong Vo, D. Van Huynh, S., Vo, A.,T., Hieu Ha, D., (2018). The Importance Of The Financial
Derivatives Markets to Economic Development in the World’s Four Major
Economies: Journal of Risk and Financial Management. Retrieved from
file:///C:/Users/CLIENT/Downloads/Documents/jrfm-12-00035.pdf