B.Com. (Banking and Insurance) Commodities and Derivatives Market Syllabus - Mumbai University
This is the Fourth Year BBI Honours syllabus under NEP 2020, in force from the academic year 2026-27. The fourth year is new in 2026-27, and the University runs it as two separate courses: Honours, and Honours with Research.
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Syllabus for Commodities and Derivatives Market
Module I: Introduction to Commodities Market and Derivatives Market
- Introduction to Commodities Market :
- Commodities Market in India, Participants in Commodities Market, Trading in Commodities in India (Cash & Derivative Segment), Commodity Exchanges in India & Abroad, Reasons for Investing in Commodities
- Introduction to Derivatives Market
- Derivatives- Meaning, Definition, Need for Derivatives market, importance of Derivatives, Demerits, Derivatives in India, Factors Driving Growth of Derivatives Market, Types of Derivatives, Types of Underlying Assets, Participants in Derivatives Market, Advantages & Disadvantages of Trading in Derivatives Market, Current Volumes of Derivative Trade in India, Difference between Forwards & Futures.
Module II: Futures and Hedging
- Futures:
- Relationship between Futures Price & Expected Spot Price, Basis & Basis Risk, Pricing of Futures Contract, Cost of Carry Model
- Hedging:
- Carry Arbitrage, Reverse Cash & Carry Arbitrage, Payoff Charts & Diagrams For Futures Contract, Perfect & Imperfect Hedge
Module III: Options and Option Pricing Models
- Options:
- Difference between Futures & Options, Trading of Options, Valuation of Options Contract, Factors affecting Option Premium, Payoff Charts & Diagrams for Options Contract, Basic Understanding of Option Strategies
- Options Pricing Models:
Module IV: Trading, Clearing & Settlement In Derivatives Market and Types of Risk
- Trading, Clearing & Settlement In Derivatives Market:
- Clearing Mechanism – NSCCL – its Objectives & Functions, Settlement Mechanism – Types of Settlement
- Types of Risk:
- Margin
Reference Books
- John C. Hull &Basu -Futures, options & other derivatives
- Robert McDonald, Derivatives market, Pearson education
- John Hull, Fundamentals of futures & options
- Ankit Gala &Jitendra Gala, Guide to Indian Commodity market, Buzzingstock publishing house
- K. Sasidharan& Alex K. Mathews, Option trading – bull market strategies, McGraw Hill publication
- Niti Chatnani, Commodity markets, McGraw Hill Publication
- S. Kevin, Commodities & financial derivatives, PHI learning Pvt ltd
- Suni K Parmeswaran, Futures & options, McGraw Hill
- Financial Management – Recent trends in practical application By Chandra HariharanIyer, IBH Pvt Ltd, Mumbai 2012
Reproduced from the University of Mumbai syllabus for B.Com. (Banking & Insurance) under NEP 2020, in force from the academic year 2026-27. Wording is as printed in that syllabus. Module numbering is as printed there too.
The complete syllabus
This subject is cut from the University circular for its year. Open a document here if you want the whole thing rather than a single subject.