An Extensive Analysis Of The Arbitrage Efficiency And Risk Return Dynamics Of Investment Strategies In The Indian Equity Derivative Market

Abstract

One of the most important roles that derivatives market plays in the economic development of a country is it. The purpose of this study is to evaluate the impact that financial derivatives (futures and options) have on the volatility of the underlying market. At the present time, financial derivatives are seeing a surge in popularity and are being utilised in the world of finance on an extremely regular basis. The term "derivatives revolution" has been coined to describe this phenomenon because it has expanded at such an unprecedented magnitude across the globe. Emergence and expansion of the derivatives market are comparatively more prevalent in India than in other countries. This is a derivative. By taking into consideration the accompanying derivative from the Indian stock market, the purpose of this essay is to investigate futures and options. The purpose of this paper is to elucidate the most effective strategies that investors can employ in order to increase their earnings at derivative markets.