📖 generic · 12th TN - English Medium · COMMERCE · Page 67question

SENSEX · Part 2

Chapter 7: 07 · COMMERCE

a trading pit, though in the 21st century, like most other markets, futures exchanges are mostly electronic. Options Market An ‘option’ is a choice based mutual agreement that allows (but need not mandatory) trading between two parties to buy or sell or trade instruments like securities, ETFs (Exchange Traded Fund), or index funds at a fixed cost and in a specified period. This market is called as options market. There are two types of options call and put option.

The call option is referred to when the activity of investor purchase of financial instruments in near future. Contradictory to this, put option is an activity by which the trader could sell the share as agreed upon in the original option contract. 12th Commerce Unit - - . .

PM They can be used as: Leverage: Options help you profit from changes in share prices without putting down the full price of the share. You get control over the shares without buying them outright. Hedging: They can also be used to protect yourself from fluctuations in the price of a share and letting you buy or sell the shares at a pre-determined price for a specified period of time Dalal Street Dalal Street is an area in downtown Mumbai, India, that houses the Bombay Stock Exchange (BSE) – the largest stock exchange in India – and other reputable financial institutions. It received the name Dalal Street after the Bombay Stock Exchange moved to the area in and became the first stock exchange recognized by the Indian Government.

The literal translation of Dalal in Marathi is a broker or intermediary. Today, Dalal Street is a metonym for the entire Indian financial sector much like Wall Street in the United States. Lombard Street Lombard Street, London, is a street notable for its connections with the City of London's merchant, banking and insurance industries, stretching back to medieval times. From Bank junction, where nine streets converge by the Bank of England, Lombard Street runs southeast for a short distance before bearing left into a more easterly direction, and terminates at a junction

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