Corporate Fin Mgt NDLM.PDF

(Nora) #1

Visual aid 46 - Other Derivatives


Other types of Derivatives



  • Forward contracts

  • Futures contracts

  • Swaps

  • Structured notes

  • Inverse floater


Faculty may use the information provided in the reading material for Learning
Unit 6 in order to develop the presentation

Group activities


After the faculty has made the presentation described above and the participants are
reasonably clear about the basics concepts, participants may be given the group exercises
described in the handout on Group Activities for Learning Unit 6.


Faculty may explain how group activities should be conducted


There is a brief note entitled 'Derivatives - Key Concepts' in the handout on Group
Activities. The participants may be asked to read the note and answer the 10 questions
that follow the note.


Following this exercise, participants may be asked to read the two case studies given in
the Handout on Group Activities. The case studies relate to (i) Tropical Sweets Inc., and
(ii) Proter & Gamble & others. After reading the case studies ask participants to reflect on
and discuss the issues/ questions following the case studies.


The reading and discussion exercise will be followed by presentations. Each group will
identify a representative to make the presentation on behalf of the group.


Faculty should be available for clarifying doubts that may arise during group discussion,
moderate the group presentations and encourage participants to note down the key
learning points from the presentations, which should be consolidated in the plenary.


(Source: Principles of Corporate Finance by Professor Brealey.I.Myrer)

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