DERIVATIVES - LIVE ON BSEINDIA.COM

BSE is proud to announce the launch of the derivatives segment on BSEINDIA.com on Monday, June 11, 2001. This will enable to view live prices of Futures and Options (F&O) market.

As a part of a staged launch, BSE is providing the following features on the F&O market.

• Realtime prices of Index and futures market
• Highlevel snapshots of the traded series'
• Extensive and detailed quotes (including Best - 5 rates with quantity) with comparisons to indices at respective places.
• Intraday series graphs
• Prices/Volumes/Spreads and Market depth
• The recently launched Options series too will be available realtime. In addition, there are already a lot of content on derivatives for the lay investor to get a better grasp of the derivatives market in the About us Section (which will be further beefed up shortly)

An interesting and unique feature in the Derivatives market is a handy, user friendly calculator that will allow investors to monitor any analyse.

Cost of Carry in the Futures segment - so that investors can ascertain their expected costs and benefits. Cost of carry is calculated on the basis of index value (currently, SENSEX) prevailing at the time of the order execution. The relationship between futures prices and spot prices can be summarized in terms of what is known as Cost of Carry. Cost of Carry is the Rate of Interest for carrying a position in a series at a rate (Series Price) using latest SENSEX value as reference. Cost of carry is calculated for Buy Price, Sell Price, Last Traded Price, Average of Buy & Sell Price, Weighted Average Buy Price, Weighted Average Sell Price, Weighted Average Price and the User can input its own value to ascertain Cost of Carry.

Options Calculator (including American and European Calculators) that will allow investors to value the options in the reckoning with details of all the Greeks like delta, gamma, theta, vega and rho. The calculator allows calculation of premium as well as implied volatility based on investor inputs. Option calculator is nothing but the model that uses the mathematical formula to calculate the theoretical value of an option. The formula is being used to calculate a theoretical value for an option using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected stock volatility. For European style options, calculations are done using Black-Scholes and for American style options, calculations are done using Binomial method (255 level).

Soon we shall be adding the following features to derivatives segment Historical Prices and user interactive charts Portfolio features for Derivatives segment Derivatives on WAP and SMS

BSEINDIA.com was launched on 18th August, 2000 and within a span of 1 year has become one of the most popular stock surfing destinations for the web savvy investor. Today the site garners more than a million pageviews a day on an average. The site was launched primarily for fulfilling the need for authentic and timely information. Some of the unique features of the site include realtime corporate announcements and results facility which allow investor to receive corporate results and announcements as soon as it is received by BSE. The Markets live section brings the most exhaustive analysis of market movers in terms of toppers/losers and circuit hitters on line with industry and index level views.

BSE has also extended its presence to enable the mobile community by launching its wap site wap.bseindia.com. This site too covers extensive online information regarding BSE stock prices and corporate information.

We hope the above will go a long way in contributing to investor awareness and education.

Dr. Manoj Vaish
Dy. Executive Director.

June 11, 2001