My Super Mother Essay

For me heroes really exist in reality. And for me my super hero is my mother. My mother actually is an ordinary woman. But for me she can do extra ordinary things. She is always there in times that I feel very hopeless, that’s why I really love her. She brought me up with a strong faith and a power to face the toughest challenges in life. She is willing to help everyone’s problems or misery without anything in return. That’s why I’m so very proud of her. For me she’s the best mother in the whole world. She’s talented, pretty and very hardworking. My mother is the one who taught me how to write, read, and how to explore things in life. She provided me and my siblings the best educational opportunities that there could be. She has always pushed me to study very hard so that I can achieve my life’s goal. My mother is also the one who influenced me to have a decision in my life. My mother’s perseverance has encouraged me to live the life of an authentic person. I and my family felt so blessed to have a mother like her. She is so very protective, supportive and very caring unlike to my father. Read more:Â  Person I admire most essay Even though she is always stressed doing the household chores she has always time to help us in our assignments, projects and all the things that we need her help. That s why I and my siblings really love her she’s our living hero. For me having my mother is the luckiest thing that I had. Even though there is many times that we are having an argument. But it’s not that really serious, because my mom is very understanding. She can understand my own feelings and she’s not very strict unlike to my father. She loves cooking foods on her own, and making her own recipes. She loves spending her time cleaning the house as always, reading books and teaching my little sister her lessons. If my mom was a food I can tell that she’s the most special one. She’s one of a kind and for me she’s the most unique and delicious food that I’ve ever tasted. And if my mom was a student, she is the most talented and the brightest of all the students in class. That’s why I’m so very proud of her. And if my mom was a warrior, she is the bravest and the strongest person that I’ve ever seen. But the truth is my mom was a simple human living in this world. But for me she is the hero and the reason why I and my family keep living. I’m very thankful to God that he had given me my mother. Because the person who influences my life the most is my mother Even though sometimes she had our breakfast overcooked, we love eating the foods that she made. And even though she commits mistakes, the number of the mistakes that she did was nothing compare to the number of the times she help us to avoid to do mistakes. I admire my mother because she is a strong woman to have the courage to face our family difficulties in our everyday life, and also she always had a big heart in caring for others. My mother has sacrificed so much just to raise us. She’s not just a mother but for us she is a hero. A hero that is always there to help us in times that we feel so burdened and in times that we need her she is also always there to guide us through the right path. Pretty, supportive, protective, cheerful, brilliant, industrious, talented, understanding, amazing and unique these are just words how to describe my mother. But for me no words can tell how wonderful my mother is. That’s why I’m very happy and contented to have a mother like her.

Relationships between Gods and Mortals in The Odyssey Essay

The Ancient Greeks were a race of very religious people who believed strongly in their gods and goddesses. Not only did they believe in the presence of their gods, they actually believed that the gods often intervened in their lives. Due to such a strong belief, the Greeks held their gods in the highest regard and had the utmost respect and reverence for them. Furthermore, they established certain types of relationships with their gods, usually not relationships in a physical sense, but relationships nonetheless. Many examples of such relationships are evident through the relationships demonstrated between characters of Homer’s epic, The Odyssey. One such relationship that the Greeks had with their gods were that they were forever trying to please them and in certain cases, their efforts were awarded. The Greeks all did their part to show respect for the gods through methods such as prayer and sacrifice, which are both evident in The Odyssey. However, in some cases, it seems that such respect was mutual, as demonstrated by some of the relationships portrayed by Homer. One such relationship was between Odysseus and Athena. The latter develops an extensive bond with the mere mortal because she sees herself in him. Due to this, she helps Odysseus out on many occasions, like when she begs her father, Zeus, to allow her to aid Odysseus in his quest to find home. She pleads, even saying, â€Å"My own heart is broken for Odysseus† (1. 68), and is able to convince him. Only through Athena’s pleading does Zeus have the incentive to dispatch Hermes to free Odysseus from Calypso’s island, allowing him to eventually find home. Another example of this type of relationship is between Athena and Telemachus, Odysseus’s son. Only through her guidance does Telemachus mature as the epic progresses, learning his responsibilities as a prince and becoming more assertive. He finally takes charge, taking the initiative to find his father and confronting the suitors. An example of Athena’s guidance is when visits Ithaca, giving him friendly advice under the disguise of being a stranger. She gives him a nudge in the right direction, at one point saying, â€Å"If I were you, I should take steps to make these men disperse† (1. 318-319). Yet another example of such positive divine intervention is through the relationship between Athena  and Penelope. The grey-eyed goddess respects Odysseus’ cunning wife and sometimes soothes her loneliness by helping her sleep. At the end of the epic, she even makes the night longer so that the lovers would have more time to get reacquainted. As Homer writes, â€Å"The rose Dawn might have found them weeping still had not grey-eyed Athena slowed the night† (23. 271-272). Athena’s goodwill helped mortals on numerous occasions in The Odyssey, demonstrating an example of the relationship between the Greeks and Gods where the mortals’ reverence was rewarded. On the contrary, another type of relationship is where the gods are rather indifferent to the mortals, despite their praying and sacrificing. Examples of this are present in Homer’s epic as well. For example, as Zeus ponders the situation of Aigà ­stos and Orestà ¬s, he muses, exclaiming, â€Å"My word, how mortals take the gods to task! All their afflictions come from us, we heard. And what of their own failings† (1. 48-50)? This is a perfect example of how contrary to the belief of some mortals, the gods did not control every insignificant detail of their lives. The gods were at times uninterested in meddling in mortal affairs. Another example of this relationship is through that of Zeus and Odysseus. Zeus admires Odysseus, asking Athena, â€Å"Could I forget that kingly man, Odysseus† (1. 87)? However, though Zeus knows exactly what has been going on with Odysseus and respects the wisdom of the mortal, he would not have taken the initiative to help him without Athena’s pleading, showing his practically indifferent attitude. However, he is better off with a god indifferent to him than with a god holding a grudge against him. Another type of relationship is one in which the gods would punish mortals for certain things, using divine intervention to negatively influence their lives. One obvious example in The Odyssey is the relationship between Odysseus and Poseidon, the former’s antagonist. Poseidon passionately hates Odysseus because he blinded the god’s son, Polyphemus, in order to escape from the man-eating cyclop’s cave. The vexed god of the sea constantly tries to hamper Odysseus’s attempts at returning home in any way possible. Another example of such relationship is when Odysseus’ men are punished for disobeying the gods. They are advised not to slaughter Helios, the Sun god’s  cattle by Tiresias, as he says â€Å"If you raid the beeves, I see destruction for ship and crew† (12. 166-167). However, the crew ignores the advice and kills some cattle for food. This is a blasphemous act and they are punished for it when Zeus sends down lightening and thunder, and they all lose their lives. Only Odysseus survives, and he barely does so. Another example of such relationship is shown through the fear that the mortals had of displeasing the gods. For example, when a storm spurred by Aeolus’s own winds brings Odysseus and his men back to Aeolus, the ruler of the wind suddenly refuses to help them because he is sure that they are cursed by the gods. Aeolus himself is scared to help them for fear that he himself will get on the bad side of a god. The Ancient Greeks obviously had relationships with the gods they worshipped in a variety of forms. Not only did some have relationships where their respect was rewarded but others were not so lucky. Others had relationships where the gods were practically indifferent toward them. These mortals took matters into their own hands. But there are also the really unlucky ones, the mortals who had relationships with gods where the gods would actually intervene in their lives negatively. Homer’s The Odyssey demonstrates an assortment of such relationships.

Paul’s Rhetoric at Mars Hill

Verses 16 and 17 of the passage that the speaker here is the Apostle Paul. He had been caught in this rhetoric with some Jews and devout persons whose background the Bible is silent and provides no elaboration [Verse 17]. According to Verse 18, there were also some Epicurean and Stoic philosophers. While the Jews follow Judaism as their religion and uphold belief in a coming Messiah, their religion traditionally emphasizes ethical conduct and the treatment of others as one would for one's self.Jewish law is based on the Torah, which essentially s the Five Books of Moses. On the contrary, the Epicureans were rivaled by the Stoics. The Stoics upheld a philosophy that life was about living in harmony with Nature. They encouraged self- control and saw courage as a means of monopolizing harmful emotions. Again, while the Jewish religion has thrived over the years, the Epicurean and Stoic philosophies faded out around the Third Century. It was wealth these deleting religious and philosophi cal backgrounds that the Apostle Paul had to address his audiences.Theirs was both a religious and heathen culture which one could identify more as a Gentile environment that knew nothing about the new faith the Apostle was trying to portray. Hence, his attempt to present what he believed in was met with hostility. To them it was a new teaching that they considered strange ideas as stated in Verse 18. It is obvious that, although a heathen society, it was equally religious as would be found in every human society. They knew about gods. In Verse 18, it is reported that, some of the people confronting the Apostle said that he seemed to be advocating foreign gods.Paul was definitely aware of their false religious beliefs. He capitalized on this when he addressed them. For when he was brought before the Reappears he told the people of Athens that he could see that they were very religious. He mentioned in Verses 23, 24 that as he walked around and looked carefully at their objects of wo rship, he even found an altar with the inscription. That to the Apostle meant that they were not ignorant of the very things they worshipped. Cleverly, he informed them that it was exactly what he was going to proclaim to them.Having opened up like this, it was apparent that the Apostle caught their attention and then charged on with his presentation of the Gospel. Essentially, the Apostle wanted to let them know that there was no hope of salvation for them In the gods In whom they had chosen to put their trust. Those were Just false gods that had no power to deliver them. In the end, the Apostle's persuasion became followers of Paul and believed. Among them was Dionysus, a member of the Reappears, also a woman named Dammars, and a number of others.

Inventory Control System Dissertation Example | Topics and Well Written Essays - 6250 words

Inventory Control System - Dissertation Example Effective inventory control permits you to have the correct amount of inventory in the right place at the right time. It ensures that capital is not tied up unnecessarily, and protects production if problems arise with the supply chain. Organizational background: The organization which I will be writing my essay about is my father company. Majeed trading establishment started in 1974 as a sole proprietorship, he started the business by himself as a small shop in Manama dealing in tiles, sanitary ware and other building materials. In the year 1990 he inducted his brother Mohammed as a partner in the company so that they can grow the business more. In the year 2000 this partnership business has converted into a limited liability Company under the name of Majeed and Mohammed Company. This company is patronized under the leadership of Abdul Majeed Abbas as chairman of the organization and Mohammed Abbas "his brother" is the managing director, the chairman takes care of the administration and personal department activities, and the managing director takes care of the entire business operation, which together makes it as one the leading business house of the country. A legal form of business organization where two or more people trade together under the partnership act of 1890 (a - z business). It is usual for partnership to have unlimited liability which means each partner legally responsible for the debts of the other partner including their tax liability, they require a high degree of trust. Forming a partnerships allow more capital to be used in the business than in case of a sole trader. The principal trading activities are importing and retailing sanitary ware, ceramic tiles, marble, mixers, Jacuzzis, shower... In my point of view, I think the best system they have to use is the online system, it will make it easier for the employees to find the information they need and they will be updated in every transaction that the company will make. The problems will be less and it will benefit the company in a way that their problem will reduce and also will increase the sale of the company because there will be a reduction of mistakes from the employees about checking the quantity of the material stock. A system which can be easily shown the now – moving stock will help the company to get rid of the death stock and the organization must work on and tries to sell the materials which are hard to be sold. In conclusion, to run a success full inventory system data analysis is a very important task.The inventory software should have a powerful technique for analyzing the raw data to achieve the meaning full information. As we know the information is wealth, without information inventory is system is an absolute failure. With the Data analysis techniques only, the company can know the average movement of the stock and forecasting, so that they know how much stock in need to be clear up, and know about all the none, slow and fast moving items. This inventory valuation report is the important report to close the current fiscal year and open a new financial year. When we want to close the current financial year company should know how much profit has been made during the year, for that company needs how much stock is laying in the warehouse.

Milton Glasers nurturing ideas Assignment Example | Topics and Well Written Essays - 500 words

Milton Glasers nurturing ideas - Assignment Example Based on Glaser’s talk, it is useful when he says that every single poster made in a banal way is a half-way toward an original design. Moreover, as he notes, intellectual activity should constantly work in order to compare this or that piece of design (Glaser, 1998). On the other hand, the relationships between different elements of design are too significant to make something unusual.PART IILooking at the way designers work, I have chosen the following four ways of design methods, namely: 1) Being your users; 2) Brainstorming; 3) Cluster and vote; 4) Physical prototyping (Design Council, 2010). First, I tried to replicate the whole picture of how potential clients would reflect on the design. It is obvious that a divine design is when people cannot but be embarrassed by what a designer created. Thus, being your users is a method to make point at the very start. It is a prerequisite toward an innovative creation. Second, brainstorming is the way of creative work which needs h uge intellectual efforts in order to generate spontaneous ideas of possible use for the overall design. In fact, it is a method supporting the whole process since the very outset until the finishing strokes (Bierut, 2006). Third, cluster and vote method is needful for me among the rest due to its aim at identifying a pattern in the problem area (Design Council, 2010). In other words, it deals more with brainstorming as long as the latter method is a so-called drive for selecting particular solutions through cluster and vote.

CIS329 Week 123 Assignment Example | Topics and Well Written Essays - 250 words

CIS329 Week 123 - Assignment Example b) The type of hardware and site of installation should also be part of checklist. The hardware type can be used to solve compatibility issues with other hardware while installation site will ensure that adequate space is chosen for the occupancy of the hardware equipment (General 2011). a) In terms of user interface, win 7 supported touch screen although it was not perfect or ideal, that is, it did not have control features that are sufficiently good. Win 8 on the other hand has improved touch screen support. An example is that of desktop which is far better in such a way that the user can close window and be able to choose menu items without any problem. b) Windows8 also has improved performance in terms of short response time as compared to win7 since it has quicker ways of opening the target programs rather than just relying on menus given that the interface is built for touch. The additional advanced features of windows 8 also make it safer in terms of security features than win 7. a) It is necessary to bypass the use of digital signatures to validate or protect device drivers in situations where non-embedded intelligent Guards against Disasters (iGADs) does not have device driver. b) In the case where non embedded iGAD do not have, one or more disaster management applications is used to run on some platforms and thus digital signatures may not be necessary for protection (Liu et al., 2013). a) The key guideline that one should meet in order to justify an administrator’s decision to bypass the use of digital signatures when validating device drivers is the design guideline. This is because the design guideline has the basics of ensuring that many levels of security and dependability are open, modular and cost effective(Di Sarno, 2011). a) Both software restriction policy and AppLocker use group policy for domain management. Nevertheless, AppLocker takes precedence over software restriction policy on computer running windows

Religion is the Cause of War Essay Example | Topics and Well Written Essays - 1000 words - 1

Religion is the Cause of War - Essay Example Basic human nature has proven over the course of the past centuries that humans ultimately seek to be defined based upon what they are, what they are not, and how they view themselves as well is how others view them. Many times this level of distinction was defined on terms of geographical origin, ethnicity, race, gender, language, or another means of separating and defining people (Eberle, 2012). However, arguably one of the most important means by which individuals from a variety of different locations, races, languages, and/or ethnicities can be divided is with regards to the division that religion so often provides. More powerful than the determinants which have already been listed, religion divides people based upon a nebulous belief system. Due to the fact that personal belief is almost invariably tied to worldview in the way that the individual perceives their surroundings and the reality in which they live, the reader can come to a basic understanding and realization for why such a multitude of many different religions, schisms, and splinter groups exist within the current paradigm. Accordingly, rather than stating that religion is the root cause of all global conflict, it will be the understanding that this analysis will point towards and defined that religion is one of the primal motivators for both current and past conflict. Due to the powerful way in which religion unites a wide variety of individuals from different walks of life, races, ethnicities, languages, and geographical origin, it represents one of the more dangerous aspects of the means by which individuals to find themselves and â€Å"the other†. One does not need to look very hard in order to identify some of the ways in which religion of the past has helps to motivate individuals to commit heinous atrocities. For instance, even a cursory review of tissue of the Abrahamic faiths, Judaism and Islam, illustrates a number of instances recorded in their respective holy books in which t he followers of these religions were encouraged to commit unspeakable atrocities upon heathens/nonbelievers/infidels or any other such group that their supposed deity commanded that they destroy. Although opponents to such an understanding of religion would merely point to the fact that this occurred many thousands of years ago and cannot be understood as representative of current faith and the means by which war is waged, one need look no further than the situations around the globe represented within the following: the Bosnia conflict, the war in East Timor, the war ensued on, repression of minority religious groups in countries as diverse as Iran, Egypt, Mali, Burma, India, Armenia, as well as a host of others (Eberle, 2012). Ultimately, although religion can be a powerful force for good in the world, the fact of the matter is that it all too often is hijacked as a means of differentiating one people group from another, encouraging one form of strife directed at another, or merel y making one group or entity feel somehow superior to another (Henne, 2012). In such a way, religion can be seen as the ultimate division whereby elements of classism, racism, and a host of other judgments are included as a means of defining who is ultimately worthy of life and who is not. In such a way, it can easily be understood by the reader why religion has a powerful role in encouraging violence towards other groups and/or nations that can somehow be dehumanized by a given belief system. This has of course happened far to many times within the past as religion has been used, and still is used as a motivator to create something of a faceless enemy which can more readily be destroyed without questions of conscience.

Assignment 3 High School Math Problem Example | Topics and Well Written Essays - 1500 words

Assignment 3 High School - Math Problem Example f '(x) = -2x + 200 = 0 Hence: x = 100 c. Graph the function: Profit The given graph is parabolic. As expected, the profit is positive from x = 20 to x =180 verifying our answer in b. It can also be seen that the maximum profit can be found in x = 100. 2. The population of the country is 50 million. Two months ago, the government required its citizen to purchase an identity card. After one month, 6 million people had it and by the end of the second month, 10 million people had one. a. Model N (number of cards) as a function of t (months) using the form: N = a + b/ (t+c) Given are the following: When t = 1 then N = 6,000,000 hence: 6,000,000 = a + b/(1+c) [eq.1] t = 2 N = 10,000,000 hence: 10,000,000 = a + b/(2+c) [eq.2] and of course, when t = 0 N = 0 hence: 0 = a + b/c or a= -b/c [eq.3] Simplifying eq. 1 and inserting the value of a from eq. 3, we have: 6,000,000 = -b/c + b/(1+c) 6,000,000 = (-b -bc +bc) / [c*(1+c)] 6,000,000 = -b/[c*(1+c)] but -b/c = a 6,000,000 = a / (1+c) a = 6,000,000 + 6,000,000c [eq.4] Simplifying eq. 1 and inserting the value of a from eq. 3, we have: 10,000,000 = -b/c + b/ (2+c) 10,000,000 = (-2b -bc +bc) / [c*(2+c)] 10,000,000 = -2b/[c*(2+c)] but -b/c = a 10,000,000 = 2a / (2+c) a = 10,000,000 + 5,000,000c [eq.5] By equation 4 & 5, we can get easily get the value of a & c: a = 30,000,000 c =4 By eq. 3, a = - b/c or b = -ac. Hence: b = -120,000,000 The model equation is therefore: N = 30,000,000 + (-120,000,000)/ (t +4) b. What is the function called Graph and define its features: The function is of the type Rational function because the equations can be expressed as a ratio of two polynomial...The intersections of the revenue and cost lines represent also the value where there is no profit or loss. In addition, it can be seen that costs and average costs intersect at some point. This can be determined with the following solution: 6. Market research suggests that potential market for a product is 800,000. At year 1, the market penetration has reached 50% or 400,000. At year 2, the market penetration has reached 75% or 600,000. Using the following model below, answer the following questions:

The impact of information technology on supply chain capabilities and Literature review

The impact of information technology on supply chain capabilities and firm performance for construction companies - Literature review Example Risks in construction projects are some of the major challenges to supply chains in the industry for delivery of value that can meet customers’ expectations. Supply chains have different risks and while little literature exists on their effects and possible solutions in the construction industry, Gosling, Naim, and Towil (2013) suggest the role of information technology in understanding the scope of the uncertainty in construction supply chains and possible solutions. According to the authors, an empirical approach that involves data collection and analysis can help in identification of the risks and roles of information technology in statistical methods is instrumental (Gosling, Naim, and Towil 2013). Consequently, implementation of information technology in construction supply chains could help in predicting and managing challenges for effectiveness and efficiency in service delivery. In addition, information technology, through use of Automated Materials Locating and Tracin g Technology, helps construction companies to overcome uncertainty challenges that arise from visibility problems (Young et al. 2013, p. 7, 8). Meng, Sun and Jones’ proposed model for managing supply chain relationships in the construction industry further supports the role of information technology in constructions’ supply chains (2011). The authors’ Maturity Model empowers construction companies to effective management that is associated with better performance, greater opportunities, and minimal conflicts. Implementing the model for these benefits however requires complex data analysis that identifies the need for information technology. The construction industry also identifies need for collaboration among stakeholders, especially between contractors and sub-contractors, for successful projects and application of such technologies as the Construction Collaborative

Factors that may impact the demand for products by customers Essay

Factors that may impact the demand for products by customers - Essay Example Services and products that a business gives to the market may have an impact on the customers’ demand for the Services or products. For instance, a business may be selling hot dogs; in contrast, a corresponding business may be selling hot dog rolls. If the cost of the hot dog rolls augments, it may make the demand for hot dogs to diminish. Consequently, the demand curve moves to the left, and value for hot dogs would be forced to augment.Customers may choose alternate services and products in place of what a person’s business provides. These alternative products and services function as opposition to a person’s business. For example, if a business sells coffee, the alternative for the product may be tea. If the cost of tea augments, a business may observe an increase in the number of customers who want to buy coffee. Consequently, the demand curve will move to the right, and costs for the business’ coffee may decrease. As indicated above, a substitute refe rs to a commodity that may be utilized in position of another commodity. To simplify the above example, if the cost of coffee increases then the consequence will be an increased demand for tea, and if the cost of tea increases then the result will be an increase in the demand of coffee. In contrast, compliments refer to commodities that may be utilized together, for example, sugar and tea. In case there is an increase in the cost of tea, the demand for tea diminishes, and consequently, the demand of sugar also decreases.... In case there is an increase in the cost of tea, the demand for tea diminishes, and consequently, the demand of sugar also decreases. Customer Preference Customers’ preference and tastes may vary depending on the details they get from family and friends, form of advertisements they come across, or the season. Varying preferences and tastes may have a tremendous impact on demand for various commodities. The degree at which a client needs a product may have an impact on the demand of the product. In addition, persuasive advertisements are developed to cause a variation in preference and tastes and thereby causes and increase in demand of a commodity. The more a customer prefers a commodity, the larger their demand for the commodity. In contrast, if the customer does not have a preference for a specified commodity, the customer will decrease the demand for the commodity (Sullivan & Sheffrin 2003, p. 79). For instance, a person suffering from diabetes will have minimal or no deman d for commodities that contain sugar. Income of Customers The incomes and salaries of buyers highlight the commodities that they are able to buy. When the incomes and salaries of customers augment the customer’s demand for services and products also increases. If a customer takes another position that has a low salary or becomes unemployed the customer’s demand for commodities lessens. In contrast, when the salary and income of a customer increases, the customer’s capacity to buy goods and services escalates (Sullivan & Sheffrin 2003, p. 79). This causes an increase in demand. Competition Rivals are always attempting to occupy the larger part of the market, maybe by developing better or new

Strategic Management Research Paper Example | Topics and Well Written Essays - 750 words - 2

Strategic Management - Research Paper Example Thus, according to Balanced Scorecard Institute (2014), strategic planning refers to the organizational management activities which set priorities, focus resources and energy and ensure that stakeholders work towards attaining the organizational goals. On the other hand, strategic management is described as a comprehensive set of continuous activities and processes which an organization uses for systematic coordination and alignment of resources and actions to the vision, mission and values of the organization. Thus, planning typically describes a time-bound practice while strategic management is an ongoing engagement. Furthermore, the institute observes that strategic management would be used to define the procedures, policies and themes of an organization as opposed to planning which entails the organization of how resources would be allocated to various business operations so as to achieve its objectives. Thus, strategic management is different from planning. Evaluating the process of strategic management gives further insights into how better to define strategic management. Thus, Dess, Lumpkin and Taylor (2005) define it as both an art and science of formulation, implementation, and evaluation of functional decisions that make an organization achieve its objectives. With this regard, Clayton (n.d.) gives the 5-step strategic management process in organizations. Goal setting involves clarifying the organizational vision eventually leading to the development of a mission statement which succinctly communicates goals to employees and shareholders. The second stage is analysis where the organization gathers relevant information and data for accomplishing the vision. It involves conducting the SWOT (strengthens, weaknesses, opportunities and threats) analysis of the organization. This would then be followed by strategic formulation which involves the determination of strategy, reflecting upon and making decisions to design plans and strategi es to address the

Jesus Christ of dance Essay Example for Free

Jesus Christ of dance Essay Doris Humphrey, born October 17, 1895 and died December 29, 1958, legend lives on today. Doris was one of several original modern choreographers. Born in a musical family, her mother taught piano lessons. Doris took dance variety of dance lessons in Chicago. Her birth place was Oak Park, IL. She began her teaching/choreography when her mother opened a dance studio. Doris was 15 years old when she began teaching dance. The dance studio opened to financially support the family. Later, she taught modern dance to community colleges. Juilliard dance program originated with her. Her father was an aspiring photographer and hotel manager. Almost all early modern choreographers studied as Denishawn dancers. The Denishawn California based dance company was founded by Ruth St Dennis and Ted Shawn. From 1918-1928, Doris danced as a principal for Denishawn. Many dancers left Denishawn when Ted Shawn made a controversial remark. One day, outspoken Martha Graham reminded him he was not Jesus Christ. Ted Shawn said he was Jesus Christ. He is the Jesus Christ of dance. Quite a few offended dancers left the company at once. In 1928, Charles Weidman and Humphrey left Denishawn starting their own dance company. The new dance company was name the Weidman-Humphrey dance company. Ted Shawn’s most famous work is Jacobs Pillow. Humphrey had original ideas about dance technique. Modern choreographers are not known to follow tradition. â€Å"Her work embodied the work of Americanist Spirit of individualism† (Debanham, Kathi, Pat, From the Ground Up). Many of her dances emphasized America. In many ways, modern dance rebels against traditional ballet. Almost all modern dancers have years of thorough ballet training. Ballet training comes through in all dancers in performances and class. Doris’s choreography, like all modern dance, is not made to be presentable. Modern dance is not even made to be proper. Modern dance displays non-human strength moves. Viewers really must pay attention to the choreography. Very advanced professional ballet dancers usually perform in short tutus. Advanced modern dancers wear full length skirts. Modern dancer’s technique while performing full length extensions are noticed when the dancers center is straight, and her knee easily touches or goes beyond her ear. Extreme balance, flexibility and strength exhibitions fill professionally choreographed modern dance performances. The only way an untrained dancer understands movements involved is to attempt to copy the choreography. Modern dance movement looks very simple. There are many fakes teaching modern dance today, especially in colleges and universities. This is obvious reading dance magazine articles, written by university professors describing dance technique. Rhythm and breathing was the base of Humphreys choreography. She spent hours exploring how breathing and rhythm works. Her choreography originated with breathing. Breathing exercises progressed to contraction and release. â€Å"All life fluctuates between resistance to and yielding to gravity† (Humphrey, Art of Making Dances). Humphreys greatest contribution to modern dance is fall and recovery technique. Grahams contraction and release technique inspired Humphreys fall and recovery technique. In ballet class, dancers hold constant tension, constant lengthening of the spine and limbs. In Humphey’s dances, the choreography extends with proper ballet technique, (sustained flow) hits a distinct movement destination, (sharp accent). Unexpectingly, the dancers collapse (rest). She related this to birth. The recovery, or release, is when the baby is born. Modern choreographers tend to design original dance techniques from their own interpretation of life’s beginning and ending. Doris Humphrey’s company ended in 1942. She then became the artistic director for Jose Limon. Limon danced in Humphrey’s company. Humphrey Choreographed over eighty dances. Some of these are: Modern-Ballet Color Harmony, 1928; Water Study 1928; The Shakers, 1931; Day on Earth 1947; Water Study is one of her most amazing works. Audiences loved it. â€Å"Dance Magazine described it as ‘a work that astounded critics and audiences alike with its synchronized, moving-wave forms, from calm lapping on a beach to a crashing tempest’ † (Texas State Library Commissions). Other choreographers at this time were Katherine Dunham, Isadora Duncan, Martha Graham, Paul Taylor. Dance is hardly a lucrative profession. Doris lived most of her life through financial hardships. Political events influenced Doris’s financial struggles. â€Å"A worldwide depression began with the October 1929 U. S. stock market crash. International bankruptcies and closing of credit unions closed many jobs. Government public works programs no longer existed. † (Paraphrased, Rise of Totalitarians, 2007). Right before her death, she wrote The Art of Making Dances. Her contributions to the dance world goes farther than fall and recovery technique and her last book. Art of Making Dances is the most significant contribution Humphrey is known for. She died in New York City on *December 29, 1958. *Dates and other facts are not consistent. Apparently, Art of Making Dances were a collection of her notes that was donated to performing arts libraries after her death. Notes; Debenham, Pat, and Kathie Debenham. From the Ground Up: Doris HumphreyModernist, Americanist, Artist. Interdisciplinary Humanities 21. 1 (2004): 78-86. Academic Search Premier. 10 April 2007. http://search. ebscohost. com. Doris Humphrey, Art of Making Dances, Dance Horizons, Copyright in 1959, 1987. Editorial, Doris Humphrey 1895-1958 Texas State Library Archives and Commission, http://galenet. galegroup. com/servlet/LitRC? vrsn=3OP=containslocID=txshrpub200866srchtp=athrca=1c=1ste=6tab=1tbst=arpai=U13706243n=10docNum=H1000149358ST=Doris+HumphreybConts=2191 Editorial, Rise of Totalitarians: 1930-39. World Almanac Book of Facts (2005): 520. Middle Search Plus. 11 April 2007. http://search. ebscohost. com.

Denture Adhesives in Prosthodontics- An Overview

Denture Adhesives in Prosthodontics- An Overview Dr Ranjith Kumar P, MDS; Dr Shajahan PA,MDS ; Dr Jyothis Mathew, MDS ABSTRACT Denture adhesives are used by an endless number of denture wearers and also by the dentists who fabricate them. Prescribing denture adhesives has been viewed by many prosthodontists as a means of compensating for deficiencies in clinical and technical procedures. Denture adhesives increase retention and thereby improve chewing ability, reduce wobble, improve comfort and confidence and reduce amount of food particles collecting under the dentures. Moreover, they undoubtedly provide the patients an increased sense of security and satisfaction. However, patients should use denture adhesives only on the advice of their dentists. INTRODUCTION Though their usage dates back to the late 18th century, they were first mentioned in dental literature in the 19th century. Earlier adhesives, formulated by mixing vegetable gums absorbed moisture from the saliva and swelled to a mucilaginous substrate that adhered to the mucosa of the mouth and the denture. Kapur’s 1 study in 1967 on 26 denture wearers, concluded that denture adhesives increased denture retention, thereby improving denture wearers’ incisive ability. Stafford and Russell, 2 using radio telemetry, measured the change in pressure, at the denture base-mucosa interface, with and without adhesives and found that denture adhesives allowed greater total occlusal pressure. The denture adhesives improved denture retention and stability (Tarbet et al 3), and found that patients perceived improved chewing ability, confidence and comfort, reduced wobble and collection of food particles under denture. Chew et al 4 determined the effectiveness of denture adhesive in improving the retention and stability of the complete maxillary denture in vivo using Kinseography. Abdelmelak and Michael 5 suggested that the denture adhesives acts as a cushion under complete denture; reducing the transmission of pressure and friction to the underlying mucosa. COMPOSITION The major constituents of denture adhesives can be broadly divided into three groups.6 Group 1 (Adhesive agents): Tragacanth, acacia, pectin, gelatin, methyl-cellulose, hydroxyl-methyl cellulose, Karaya Gum, sodium carboxyl-methyl cellulose and synthetic polymers (polyethylene oxide, acrylamides, acetic and polyvinyl). Group 2 (Anti-microbial agents) Sodium borate, sodium tetraborate, hexachlorophene and ethanol. Group 3 (Other agents) Plasticizers, wetting agents and flavouring agents such as oil of wintergreen, oil of peppermint, etc. Mechanism of Action Denture adhesives are supplied as paste, powder or cream. As the Adhesive powders absorb water, they swell to many times their original volume and the resulting anions are attracted to cations in the mucous membrane proteins. Sticky saliva thus formed increases the viscosity of the adhesive, thereby increasing the denture retention.7 Newer adhesive materials provide stronger bio-adhesive and cohesive forces. Free carboxyl groups formed by the hydration of adhesive such as methyl cellulose, hydroxyl methyl cellulose, sodium carboxyl-methyl cellulose or poly methyl vinyl-ether maleic anhydride (PVM-MA), etc. form electrovalent bonds that produce stickiness or bio adhesion. The increased viscosity of the adhesive creams result in their lateral spread excluding air and saliva thereby increasing the retention 8. Requirements of an ideal Denture Adhesive 9 Available as gels, creams and powders. Nontoxic, non-irritant, and biocompatible with the oral mucosa. It should have a neutral odour and taste. Easy application and removal from the tissue surface of the denture. Discourage microbial growth. Adhesiveness should be retained for 12-16 hrs. Increase the comfort, retention and stability of the denture Mode of application: Any residual adhesive should be removed from the tissue-bearing surface of the denture . The denture bearing tissues are wiped clean of any food debris. Wet dentures before application of adhesive. Small amounts of adhesive is applied to the tissue-bearing surface of denture. In the maxillary denture -Anterior alveolar ridge, the center of hard palate and posterior palatal seal region . In the mandibular denture apply to the sulcus of denture over the crest of the ridge extending from the anterior region sulcus to the distal extension. Denture should be seated and held in place firmly by hand pressure for 5-10 seconds. Gauze is used to remove excess adhesive . Patient is advised to close into centric occlusion several times to spread the adhesive as a thin even layer. Indications. Recording jaw relations and denture try in should be done using stable and retentive bases. The use of denture adhesive can stabilize the trail denture bases which show inadequate retention and stability due to various reasons. Use of adhesive will improve the accuracy of the denture try-in, and also decrease the patient apprehension about the fit of the final prosthesis. Use of adhesives in patients with compromised denture bearing areas adds to their confidence thereby increasing the ability to adapt to the new prosthesis. Immediate denture get loosened soon due to soft tissue healing and bony resorption requiring relining, rebasing, or a new denture fabrication. A soft liner used to augment the retention; comfort and function during the interim period are aided by the use of a denture adhesive. Reduced clinical findings of ulcers, tissue irritation, compression, and inflammation of the oral mucosa of denture wearers were seen with concomitant use of adhesives. Xerostomia in denture wearers either drug or radiotherapy induced can be alleviated with the use of denture adhesives. Stabilization of dentures in patients with hormonal changes and neuromuscular disorders such as myasthenia gravis, Parkinson’s and Alzheimer’s disease, etc., can be achieved with denture adhesives. Prosthesis to rehabilitate gross maxillofacial defects requires denture adhesives for retention. Denture adhesives are valuable adjuncts to the retention of radiation carriers or radiation protection prostheses. Usage of minimal amounts of adhesives provides high profile patients like attorneys, executives, speakers, etc. with psychological security in social situations. Contraindications Allergies to denture adhesives or any of its components. Gross inadequacies in retention and function. Excessive bone resorption and soft tissue shrinkage leading to loss of vertical dimension. Adhesives should not be used to retain fractured dentures or dentures with missing flange or with sectional fractures. Patients with inability to maintain proper hygiene of the denture should avoid use of denture adhesive. Conclusions Denture adhesives, when used properly are safe and beneficial to the patient in increasing retention and stability, enhanced comfort, improved function, and in providing psychological satisfaction. They should not be used as an aid to compensate for denture deficiencies even though adhesives enhance denture performance. Patients should not use denture adhesives inadvertently without proper guidance and instructions from the dentists.

Zoos Should be Banned :: Zoo Animals

Zoos are an unsuitable environment for wild animals and should, therefore, be abolished. Firstly, zoo animals are kept in a very confined area compared with their vast natural habitat. Secondly, breeding programmes are far less successful than zoos claim. Thirdly, zoo animals are exposed to many diseases and other dangers. Zoo animals are usually kept in very cramped enclosures and do not behave like their wild counterparts. Polar bears, for example, are given about 10 metres of walking space whereas in their Arctic home they roam for many hundreds of kilometres. Similarly, primates, big cats and birds are often confined in cages where they lack exercise and stimulation. Many animals develop unnatural habits such as pacing back and forth or swaying from side to side. Supporters of zoos argue that they help to conserve endangered species, but in fact they are not very good at this. Even the world famous panda-breeding programme has been very costly and unsuccessful. Also, zoo life does not prepare animals for the challenges of life in the wild. For example, two rare lynxes released into the wild in Colorado died from starvation even though the area was full of hares, which are a lynx’s natural prey. The zoo is an unnatural environment that exposes animals to numerous dangers. Diseases often spread between species that would never live together naturally. For example, many Asian elephants have died in US zoos after catching herpes from African elephants. Furthermore, zoo animals are often exposed to chemicals, solvents and other toxic substances. Finally, it is common for visitors to tease and provoke caged animals. In conclusion, therefore, it is not true to say that zoos are educational or they help to protect endangered species.

The Moon Hoax Essay -- Publicity Stunt Media

The "Moon Hoax" has been around since 1835, when the New York Sun printed an article about this whole ordeal. The New York Sun used and credited Sir John Herschel, who was a British Astronomer. Herschel claimed that he had tried out a new type of telescope on the Cape of Good Hope in January of 1834. While in Cape Town, he said he'd set up an Observatory. Using this, he claimed to have observed what he thought of as the "Real" Moon. He claimed to have seen vegetation, bodies of water, and living creatures. He also said he had seen "Bat People" who were described as being furry winged men. This took the People at a shock, and the "Evidence" and science astounded them. So many began to believe this is true. Today, there is still talk of this "Moon Hoax". There are many things that one can say doesn't make sense about the whole idea of landing on the moon. Most astronauts that have landed on the moon have brought back samples of a type of Lunar rock. According to Dr. Sten Odenwald, we have accumulated at least 841.6 pounds of moon rock.. ?Moon Hoax? Believers say that this Moon Rock could be any thing, and that if you take an unfamiliar type of rock, and call it a Moon Rock, people are going to believe it. There is one major problem with this theory. ?Dr. David McKay of NASA's Johnson Space Center says that faking a Moon rock to fool scientists around the world would be next to impossible. ?It would be far easier to just go to the Moon and get one!? he says.? (2) Moon Rocks have been tested, and tested, and tested. Each time scientists have found many different minerals in Moon Rocks that aren?t in Earth rocks. Earth rocks contain many clay minerals, which is exactly what Moon Rocks don?t have, clay minerals. In the... ....astronomycafe.net/qadir/q1019.html. This site is a good source because it?s a recollection of common known data. 4. Percy, David, and Mary Bennett. "The Faked Apollo Landings." 15 Oct. 2007 http://www.ufos-aliens.co.uk/cosmicapollo.html. This site is not a good source because it uses doctored and biased pictures and arguments to prove its points. 5. Phillips, Dr. Tony. "The Great Moon Hoax." Science@ Nasa. NASA's Marshall Space Flight Center. 15 Oct. 2007 http://science.nasa.gov/headlines/y2001/ast23feb_2.htm. This is a good source because it was written my a team of space and engineering specialists. 6. "The Moon:3 Exploring the Moon." The Worlds of David Darling. 15 Oct. 2007 http://www.daviddarling.info/childrens_encyclopedia/Moon_Chapter3.html This site is a good source because it?s information can be backed up with other good sources.

neighbors :: essays research papers

Has jealously ever made you take action in ways that you wouldn’t normally? Have you ever wondered what it would be like to live in someone else’s shoes? If given the opportunity, would you step into his or her daily lifestyle? In the short story â€Å"Neighbors† by Raymond Carver, a young couple proves that the parasite of a trait, known as jealously, rarely has a happy ending.   Ã‚  Ã‚  Ã‚  Ã‚  Jealously by definition is a resentful, suspicious, envious feeling of the mind. This is exactly what forced the Millers to act uncivilized when given the capability to befall into the seeming less better life of someone else. Ashamed of their jealousy, the couple kept it a secret and began lying to each other. Evidently, the Millers became obsessed in becoming someone else.   Ã‚  Ã‚  Ã‚  Ã‚  Bill Miller wanted to experience life in a more extravagant environment. He went through the everyday tasks that his next-door neighbors, the Stones, would perform. Many of these things he wouldn’t normally do; for example, Bill stole from the Stones’ apartment in order to make him feel superior. He even became so empowered by the life of his neighbors that he began to lose track of time. Jealousy influenced Bill to metamorphosis into somebody else.   Ã‚  Ã‚  Ã‚  Ã‚  Arlene Miller’s jealousy also made her feel resentful towards her wealthy neighbors. She wished to have the same opportunities her friends seemed to have. As time passed, Arlene also had the itch to snoop into the secrets of their neighbor’s home. She found exactly what she was searching for, something to prove that the Stones’ didn’t live the perfect life. Ironically, due to her discovery and jealousy the unbelievable fell upon her. She realized she was locked out of her neighbor’s apartment.

Gender Analysis of “The Tigers Bride” by Angela Carter Essay

The short story_The Tigers Bride_ raises thought provoking concepts around gender through a plot both alike and unlike traditional Beauty and the Beast. The role of both genders is explored and true freedom questioned within the bounds of society. The text delivers a powerful and even handed message to the genders that constraints are merely a construct, a mask which can slip and shatter when pressure is applied. Angela Carter sketches a bleak setting, and equally bleak outlook for the female protagonist, caught in a powerless, debased and objectified position of social standing. Agency is firmly placed with The Beast, and the father, opening with the line; ‘My father lost me to The Beast at cards’. Objectified from the outset for her beauty, the narrator is declared a ‘treasure’ by both men and a ‘pearl beyond price’ by her father. The barb is deepened with Christmas, the day of items named as the day of her birth. Her nickname ‘Christmas rose’ gives rye commentary on the traditional symbolism of the rose, which re-emerges later stained with her blood, representing the loss of innocence at the hands of the patriarchy much as her mother before her who ‘did not blossom long’. Despite her predicament the narrator represents herself and her gender atypically to binary stereotype with a cynicism and wit that cuts through the flaws of the hegemonic dominated society around her. Receiving a rose from The Beast, she calls it ‘unnatural and out of season’ and tears it apart whilst being bartered as an object in the card game. Her disdain for her predicament and surrounds are powerless in these early stages and are blended with a sadness ‘you think there is no winter but forget you take it with you’. The narrator fast becomes a heroine to the audience, through a nurtured appreciation of her budding inner strength. This is emphasised by the stark contrast to the insipidness of the father and veiled vulnerability of The Beast. The windup soubrette doll becomes a leading symbol of the dehumanising ideals of society on the female gender with the heroine  likening herself to the doll, initially. The valet’s statement ‘surrounding ourselves for utility and pleasure with simulacra is no less convenient than for most gentlemen’ casts light on the hegemonic expectation of society. However the heroine’s character grows in strength with every denial to The Beast and her rejection of society’s expectations of ‘her skin as her sole capital’ she acts on this through her rejection of the gifted diamond earrings. Role reversal occurs when The Beast himself unclothes in vulnerability ahead of the heroine. Transformation is near complete when she views the soubrette in a new light and intends to send the doll back to perform the stilted role of father’s daughter, realising that true freedom from the limitations of society means shedding and joining the ‘beasts’. The text proposes that gender constraints are a construct and are not limited to the suppression of female power. The bounds of society on The Beast and his estate are also evident and ironically his visage, scent and abode is criticised by the heroine as failing to comply with expectations. Her animosity towards The Beast is likely birthed in her predicament, his mask a reminder of the too perfect hegemony she detests. However The Beast conducts himself with a subtleness and dignity that can be afforded to no human in the story. Contrasting The Beasts behaviour with the character of the father or the viscous rumours of the nursemaids highlights the authors point that the limitations gender and society have created hamper the full potential of character. The Beasts compassion and coyness suggest an inner subordinate or complicit form of masculinity, the hegemonic persona forced, donned as disguise to conform. The story outlines an ideal place; ‘nothing human lives here’, a place where identity is essential to being not performed as a requirement. The message is bittersweet; the escape to freedom in a new skin is a relative exile from society; a clear rebuke to a society which forces such drastic methods upon the genders to avoid cultural ideation. Bibliography: Carter, Angela, (1996). The Tiger’s Bride. In Carter, Angela, Burning your boats : the collected short stories, (pp.183 – 201). London: Vintage.

Returning to School Essay

Returning to school was one of the important decisions, I have made about my future. I will be discussing my reasons for returning to school. Such as setting a good example for my children and getting a higher education. Returning to school was a very important decision for many reasons that include setting a good example for my children and carrier advancement. I firmly believe in leading by example, and I want them to see that if I can do it, they can do it as well. I am determined to be the best role model that I can possibly be. My decision in obtaining a Higher education is the key for my present and future as it will be for them. Without it I have gotten about as far as I can with my current employer and I would be left with the feeling as if I have sold myself short. If I get a college education, I will have something to help me get the job that I want and deserve. Even though higher education, Reasons on returning to school because Setting an example for my children and Getti ng a higher education. I have had several jobs over the years. The majority of them have been in nursing in one form or another, my current job is a Certified Nursing Assistant at a nursing home, and prior to that I was a Certified Nursing Assistant doing private duty for over ten years. I am working towards a Bachelor’s Degree in Healthcare Administration in Long Term Care. I know that once I receive my degree I will be qualified for a variety of jobs. The job that I would like the most would be a Administrator in a nursing home. I want to help others who don’t have the means to help themselves. Most of all I can’t stand seeing elderly people who are not properly cared for, especially those who just don’t seem to care about their well being. This is not the first attempt I have made to return to school, this is actually the second. I tried returning to school once before while working and partying before I had kids. At first everything went fairly well but over a short period of time I realized the work load would prove to be too much. I was working eighty plus hours every two weeks which did not allow for me to have the proper amount of time to spend studying so I had to end up dropping out. Pursuing a degree in Healthcare Administration in Long Term Care can help in many ways. It will help me develop communication skills. After reviewing the description of Healthcare Administration in Long Term Care and talking it over with my academic advisor, I decided to go with it. With this degree I could start my own business. Work for a non-profit organization. Also I could simply decide to pursue a management position with my current employer. I have a wide range of work I can find with this degree. I know I picked the right degree and the right time to return to school. The benefits of obtaining a college degree have been obvious. Getting a higher education to get a better job and higher salary is definitely a benefit. Setting an example and being a role model for my four children is reward enough.

Belonging Pactise Essay

For a person to belong into a certain group, class or society, they must learn to fit in with that certain group, class or society and learn the rituals, language, behaviour responsibilities and culture. The sense of belonging to one of these social groups gives one a sense of belonging, and cancels out the feeling of exclusion and isolation. The journey into fitting into these groups can be a challenging task, which involves class clashes and other obstacles. Through the study of Educating Rita, we see the benefits of belonging, but contrasting them with the negatives in belonging. In order to fit in to a new class, one must learn the aspirations, culture, interests and language, otherwise they will not be able to communicate and feel the sense of belonging to the new class. In Educating Rita, the struggle Rita goes through in order to transforms her old self, into a new and improved Rita, shows us that in order to belong to a social class one must first have self-actualization, knowing what their purpose and aspirations are in life, in order to pursue the correct class for them. This is the problem that Rita has from the beginning of the play, the lack of self-actualization causes her the excessive want to change and to fit into the higher social class. Rita’s epiphany only comes towards the end of the play, but the struggles and obstacles that lead to the epiphany show us the importance of self-actualization. Throughout the play, we can clearly outline the differences between the two social classes, the working-class and the middle-class. These differences in language, culture, aspirations and rituals cause the obstacles to fit in. The task that Rita is pursuing is a very challenging one, that may not even be achieved. From the beginning of the play we see the struggles she is going to have, when she struggles to open the door. This is symbolic to the struggles and obstacles she will face during the process of trying to belong. The difference between language and education is shown when Frank is discussing the book Howard’s End, and Rita’s lack of education leads to the misunderstanding of the book’s title, and mocks the pun. The ambition and desire to belong into the higher social class is caused because of the lack of self-actualization. When Frank asks Rita why she has enrolled into the class, she answer, â€Å"I wanna know†¦ Everything†, this shows her lack of understanding about her own ambitions and aspirations, and shows that she is still looking for something to fulfil and enrich her life. The disproportionate use of tag questions suggests Rita’s lack of confidence, which reflects on her lack of self-actualization.

A Study on Futures and Potions

A STUDY ON FUTURES AND POTIONS Project submitted in partial fulfillment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION DECLARATION I hereby declare that this Project Report titled, â€Å"A STUDY ON THE DERIVATIVES† submitted by me to the Department OF BUSINESS ADMINISTRATION, XXXX and is a bonafide work under taken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before. Name and Address of the StudentSignature of the student Date : ACKNOWLEDGEMENTI wish to express my sincere deep sense of gratitude and also thank my guide XXX, Faculty of Finance for his significant suggestions and help in every aspect to accomplish the project work. His persisting encouragement, everlasting patience and keen interest in discussions have benefited me to the extent that cannot be spanned by words. I take my pleasure to acknowledge XXXX for the facilities provided and constant encouragem ent. Finally I express bows to everyone who are involved with this project. CONTENTS INTRODUCTION METHODOLOGY 1 FUTURES 2 OPTIONS ANALYSIS OF THE STUDYSUMMARY AND CONCLUSIONS BIBLIOGRAPHY INTRODUCTION Nature of the problem: The turnover of the stock exchanges has been tremendously increasing from last 10 years. The number of trades and the number of investors, who are participating, have increased. The investors are willing to reduce their risk, so they are seeking for the risk management tools. Prior to SEBI abolishing the BADLA system, the investors had this system as a source of reducing the risk, as it has many problems like no strong margining system, unclear expiration date and generating counter party risk.In view of this problem SEBI abolished the BADLA system. After the abolition of the BADLA system, the investors are seeking for a hedging system, which could reduce their portfolio risk. SEBI thought the introduction of the derivatives trading, as a first step it has set up a 24 member committee under the chairmanship of Dr. L. C. Gupta to develop the appropriate regulatory framework for derivative trading in India, SEBI accepted the recommendations of the committee on May 11, 1998 and approved the phased introduction of the derivatives trading beginning with stock index futures.There are many investors who are willing to trade in the derivative segment, because of its advantages like limited loss and unlimited profit by paying the small premiums. IMPORTANCE OF THE STUDY: To evaluate the profit/loss position of option holder and option writer. OBJECTIVES OF THE STUDY: ? To analyze the derivatives market in India. ? To analyze the operations of futures and options. ? To find out the profit/loss position of the option writer and option holder. ? To study about risk management with the help of derivatives. SCOPE OF THE STUDY:The study is limited to â€Å"Derivatives† with special reference to futures and options in the Indian context and the Hyder abad stock exchange has been taken as a representative sample for the study. The study can’t be said as totally perfect. Any alteration may come. The study has only made a humble attempt at evaluating derivatives market only in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, NYSE etc. LIMITATIONS OF THE STUDY: The following are the limitations of this study. The scrip chosen for analysis is STATE BANK OF INDIA and the contract taken is March 2005 ending one-month contract. ? The data collected is completely restricted to the STATE BANK OF INDIA of March 2005; hence this analysis cannot be taken as universal. METHODOLOGY The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices.By their very nature, the financial ma rkets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking–in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivatives are risk management instruments, which derive their value from an underlying asset.The underlying asset can be bullion, index, share, bonds, currency, interest etc. Banks, securities firms, companies and investors to hedge risks, to gain access to cheaper money and to make profit, use derivatives. Derivatives are likely to grow even at a faster rate in future. DEFINITION: Derivative is a product whose value is derived from the value of an underlying asset in a contractual manner. The underlying a sset can be equity, forex, commodity or any other asset. Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"derivative† to include – 1.A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. 2. A contract which derives its value from the prices, or index of prices, of underlying securities. PARTICIPANTS: The following three broad categories of participants in the derivatives market. HEDGERS: Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. SPECULATORS: Speculators wish to bet on future movements in the price of an asset.Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. ARBITRAGEURS: Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. FUNCTIONS OF DERIVATIVES MARKET: The following are the various functions that are performed by the derivatives markets.They are: ? Prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. ? Derivatives market helps to transfer risks from those who have them but may not like them to those who have an appetite for them. ? Derivative trading acts as a catalyst for new entrepreneurial activity. ? Derivatives markets help increase savings and investment in the long run. Types of derivatives: the following are the various types of derivatives. They are: Forwards:A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the futu re at today’s pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Options: Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date.Warrants: Options generally have lives of upto one year; the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset i s usually a moving average of a basket of assets. Equity index options are a form of basket options. Swaps:Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency. _ Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite Direction. Swaptions: Swaptions are options to buy or sell a swap that will become operative at the expiry of the options.Thus a swaption is an option on a forward swap. RATIONALE BEHIND THE DEVELOPMENT OF DERIVATIVES: Holding portfolio of securities is associated with the risk of the possibility that the investor may realize his returns, which would be much lesser than what he expected to get. There are various factors, which affect the returns: 1. Price or dividend (interest). 2. Some are internal to the firm like – ? Industrial policy ? Management capabilities ? Consumer’s preference ? Labor strike, etc. These forces are to a large extent controllable and are termed as non Systematic risks.An investor can easily manage such non-systematic by having a well – diversified portfolio spread across the companies, industries and groups so that a loss in one may easily be compensated with a gain in other. There are yet other types of influences which are external to the firm, cannot be controlled and affect large number of securities. They are termed as systematic risk. They are: 1. Economic 2. Political 3. Sociological changes are sources of systematic risk. For instance, inflation, interest rate, etc. their effect is to cause prices of nearly all individual stocks to move together in the same manner.We therefore quite often find s tock prices falling from time to time in spite of company’s earnings rising and vice versa. Rationale behind the development of derivatives market is to manage this systematic risk, liquidity and liquidity in the sense of being able to buy and sell relatively large amounts quickly without substantial price concessions. In debt market, a large position of the total risk of securities is systematic. Debt instruments are also finite life securities with limited marketability due to their small size relative to many common stocks.Those factors favour for the purpose of both portfolio hedging and speculation, the introduction of a derivative security that is on some broader market rather than an individual security. India has vibrant securities market with strong retail participation that has rolled over the years. It was until recently basically cash market with a facility to carry forward positions in actively traded ‘A’ group scrips from one settlement to another b y paying the required margins and borrowing some money and securities in a separate carry forward session held for this purpose.However, a need was felt to introduce financial products like in other financial markets world over which are characterized with high degree of derivative products in India. Derivative products allow the user to transfer this price risk by looking in the asset price there by minimizing the impact of fluctuations in the asset price on his balance sheet and have assured cash flows. Derivatives are risk management instruments, which derive their value from an underlying asset. The underlying asset can be bullion, index, shares, bonds, currency etc.DERIVATIVE SEGMENT AT NATIONAL STOCK EXCHANGE: The derivatives segment on the exchange commenced with S&P CNX Nifty Index futures on June 12, 20007. The F&O segment of NSE provides trading facilities for the following derivative segment: 1. Index Based Futures 2. Index Based Options 3. Individual Stock Options 4. Ind ividual Stock Futures |COMPANY NAME |CODE |LOT SIZE | |ABB Ltd. ABB |200 | |Associated Cement Co. Ltd. |ACC |750 | |Allahabad Bank |ALBK |2450 | |Andhra Bank |ANDHRABANK |2300 | |Arvind Mills Ltd. ARVINDMILL |2150 | |Ashok Leyland Ltd |ASHOKLEY |9550 | |Bajaj Auto Ltd. |BAJAJAUTO |200 | |Bank of Baroda |BANKBARODA |1400 | |Bank of India |BANKINDIA |1900 | |Bharat Electronics Ltd. BEL |550 | |Bharat Forge Co Ltd |BHARATFORG |200 | |Bharti Tele-Ventures Ltd |BHARTI |1000 | |Bharat Heavy Electricals Ltd. |BHEL |300 | |Bharat Petroleum Corporation Ltd. |BPCL |550 | |Cadila Healthcare Limited |CADILAHC 500 | |Canara Bank |CANBK |1600 | |Century Textiles Ltd |CENTURYTEX |850 | |Chennai Petroleum Corp Ltd. |CHENNPETRO |950 | |Cipla Ltd. |CIPLA |1000 | |Kochi Refineries Ltd |COCHINREFN |1300 | |Colgate Palmolive (I) Ltd. COLGATE |1050 | |Dabur India Ltd. |DABUR |1800 | |GAIL (India) Ltd. |GAIL |1500 | |Great Eastern Shipping Co. Ltd. |GESHIPPING |1350 | |Glaxosmithkline Pharma Ltd. |GLAXO |300 | |Grasim Industries Ltd. |GRASIM |175 | |Gujarat Ambuja Cement Ltd. GUJAMBCEM |550 | |HCL Technologies Ltd. |HCLTECH |650 | |Housing Development Finance Corporation Ltd. |HDFC |300 | |HDFC Bank Ltd. |HDFCBANK |400 | |Hero Honda Motors Ltd. |HEROHONDA |400 | |Hindalco Industries Ltd. |HINDALC0 |150 | |Hindustan Lever Ltd. HINDLEVER |2000 | |Hindustan Petroleum Corporation Ltd. |HINDPETRO |650 | |ICICI Bank Ltd. |ICICIBANK |700 | |Industrial development bank of India Ltd. |IDBI |2400 | |Indian Hotels Co. Ltd. |INDHOTEL |350 | |Indian Rayon And Industries Ltd | INDRAYON |500 | |Infosys Technologies Ltd. INFOSYSTCH |100 | |Indian Overseas Bank |IOB |2950 | |Indian Oil Corporation Ltd. |IOC |600 | |ITC Ltd. |ITC |150 | |Jet Airways (India) Ltd. |JETAIRWAYS |200 | |Jindal Steel & Power Ltd |JINDALSTEL |250 | |Jaiprakash Hydro-Power Ltd. JPHYDRO |6250 | |Cummins India Ltd |KIRLOSKCUM |1900 | |LIC Housing Finance Ltd |LICHSGFIN |850 | |Mahindra & Mahindra Ltd. |M&M |625 | |Matrix La boratories Ltd. |MATRIXLABS |1250 | |Mangalore Refinery and Petrochemicals Ltd. MRPL |4450 | |Mahanagar Telephone Nigam Ltd. |MTNL |1600 | |National Aluminium Co. Ltd. |NATIONALUM |1150 | |Neyveli Lignite Corporation Ltd. |NEYVELILIG |2950 | |Nicolas Piramal India Ltd |NICOLASPIR |950 | |National Thermal Power Corporation Ltd. NTPC |3250 | |Oil & Natural Gas Corp. Ltd. |ONGC |300 | |Oriental Bank of Commerce |ORIENTBANK |600 | |Patni Computer System Ltd |PATNI |650 | |Punjab National Bank |PNB |600 | |Ranbaxy Laboratories Ltd. RANBAXY |200 | |Reliance Energy Ltd. |REL |550 | |Reliance Capital Ltd |RELCAPITAL |1100 | |Reliance Industries Ltd. |RELIANCE |600 | |Satyam Computer Services Ltd. SATYAMCOMP |600 | |State Bank of India |SBIN |500 | |Shipping Corporation of India Ltd. |SCI |1600 | |Siemens Ltd |SIEMENS |150 | |Sterlite Industries (I) Ltd |STER |350 | |Sun Pharmaceuticals India Ltd. SUNPHARMA |450 | |Syndicate Bank |SYNDIBANK |3800 | |Tata Chemicals Ltd |TATACHEM |1350 | |Tata Consultancy Services Ltd |TCS |250 | |Tata Power Co.Ltd. |TATAPOWER |800 | |Tata Tea Ltd. |TATATEA |550 | |Tata Motors Ltd. |TATAMOTORS |825 | |Tata Iron and Steel Co. Ltd. |TISCO |675 | |Union Bank of India |UNIONBANK |2100 | |UTI Bank Ltd. UTIBANK |900 | |Vijaya Bank |VIJAYABANK |3450 | |Videsh Sanchar Nigam Ltd |VSNL |1050 | |Wipro Ltd. |WIPRO |300 | |Wockhardt Ltd. |WOCKPHARMA |600 | REGULATORY FRAMEWORK:The trading of derivatives is governed by the provisions contained in the SC ( R ) A, the SEBI Act, the and the regulations framed there under the rules and byelaws of stock exchanges. Regulation for Derivative Trading: SEBI set up a 24 member committed under Chairmanship of Dr. L. C. Gupta develop the appropriate regulatory framework for derivative trading in India. The committee submitted its report in March 1998. On May 11, 1998 SEBI accepted the recommendations of the committee and approved the phased introduction of Derivatives trading in India beginning with Stock Index F utures.SEBI also approved he â€Å"Suggestive bye-laws† recommended by the committee for regulation and control of trading and settlement of Derivatives contracts. The provisions in the SC (R) A govern the trading in the securities. The amendment of the SC (R) A to include â€Å"DERIVATIVES† within the ambit of ‘Securities’ in the SC (R ) A made trading in Derivatives possible within the framework of the Act. 1. Any exchange fulfilling the eligibility criteria as prescribed in the L. C. Gupta committee report may apply to SEBI for grant of recognition under Section 4 of the SC (R) A, 1956 to start Derivatives Trading.The derivatives exchange/segment should have a separate governing council and representation of trading / clearing members shall be limited to maximum of 40% of the total members of the governing council. The exchange shall regulate the sales practices of its members and will obtain approval of SEBI before start of Trading in any derivative co ntract. 2. The exchange shall have minimum 50 members. 3. The members of an existing segment of the exchange will not automatically become the members of the derivative segment. The members of the derivative segment need to fulfill the eligibility conditions as lay down by the L.C. Gupta Committee. 4. The clearing and settlement of derivates trades shall be through a SEBI approved Clearing Corporation / Clearing house. Clearing Corporation / Clearing House complying with the eligibility conditions as lay down By the committee have to apply to SEBI for grant of approval. 5. Derivatives broker/dealers and Clearing members are required to seek registration from SEBI. 6. The Minimum contract value shall not be less than Rs. 2 Lakh. Exchanges should also submit details of the futures contract they purpose to introduce. 7.The trading members are required to have qualified approved user and sales person who have passed a certification programme approved by SEBI. FUTURES DEFINITION: A Futur es contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. To facilitate liquidity in the futures contract, the exchange specifies certain standard features of the contract. The standardized items on a futures contract are: ? Quantity of the underlying ? Quality of the underlying ? The date and the month of delivery ? The units of price quotations and minimum price change ? Locations of settlementTYPES OF FUTURES: On the basis of the underlying asset they derive, the futures are divided into two types: ? Stock futures: The stock futures are the futures that have the underlying asset as the individual securities. The settlement of the stock futures is of cash settlement and the settlement price of the future is the closing price of the underlying security. ? Index futures: Index futures are the futures, which have the underlying asset as an Index. The Index futures are also cash settled. The settlement price of the Inde x futures shall be the closing value of the underlying index on the expiry date of the contract.Parties in the Futures Contract: There are two parties in a future contract, the Buyer and the Seller. The buyer of the futures contract is one who is LONG on the futures contract and the seller of the futures contract is one who is SHORT on the futures contract. The pay off for the buyer and the seller of the futures contract are as follows. PAYOFF FOR A BUYER OF FUTURES: [pic] CASE 1: The buyer bought the future contract at (F); if the futures price goes to E1 then the buyer gets the profit of (FP). CASE 2: The buyer gets loss when the future price goes less than (F), if the futures price goes to E2 then the buyer gets the loss of (FL).PAYOFF FOR A SELLER OF FUTURES: [pic] F – FUTURES PRICE E1, E2 – SETTLEMENT PRICE. CASE 1: The Seller sold the future contract at (f); if the futures price goes to E1 then the Seller gets the profit of (FP). CASE 2: The Seller gets loss when the future price goes greater than (F), if the futures price goes to E2 then the Seller gets the loss of (FL). MARGINS: Margins are the deposits, which reduce counter party risk, arise in a futures contract. These margins are collected in order to eliminate the counter party risk. There are three types of margins: Initial Margin:Whenever a futures contract is signed, both buyer and seller are required to post initial margin. Both buyer and seller are required to make security deposits that are intended to guarantee that they will infact be able to fulfill their obligation. These deposits are Initial margins and they are often referred as performance margins. The amount of margin is roughly 5% to 15% of total purchase price of futures contract. Marking to Market Margin: The process of adjusting the equity in an investor’s account in order to reflect the change in the settlement price of futures contract is known as MTM Margin.Maintenance margin: The investor must keep the fut ures account equity equal to or greater than certain percentage of the amount deposited as Initial Margin. If the equity goes less than that percentage of Initial margin, then the investor receives a call for an additional deposit of cash known as Maintenance Margin to bring the equity up to the Initial margin. Role of Margins: The role of margins in the futures contract is explained in the following example. S sold a Satyam February futures contract to B at Rs. 300; the following table shows the effect of margins on the contract.The contract size of Satyam is 1200. The initial margin amount is say Rs. 20000, the maintenance margin is 65% of Initial margin. |DAY |PRICE OF SATYAM |EFFECT ON BUYER (B) |EFFECT ON SELLER (S) |REMARKS | | | |MTM |MTM | | | | |P/L |P/L | | | | |Bal. in Margin |Bal. n Margin | | | | | | | | |1 | | | | | | | | | |Contract is entered and| | |300. 00 | | |initial margin is | | | | | |deposited. |2 | | | | | | | | | | | | | |+13,200 | | | | | | |-13,200 |B got profit and S got | | |311(price increased) | |+13,200 |loss, S deposited | |3 | | | |maintenance margin. | | | | | | | | | | | |B got loss and | | | | | |deposited maintenance | |4 | |-28,800 | |margin. | | |+15,400 |+28,800 | | | | | | | | | |287 | | |B got profit, S got | | | | | |loss. Contract settled| | | | | |at 305, totally B got | | | |+21,600 | |profit and S got loss. | | | |-21,600 | | | | | | | | | |305 | | | | Pricing the Futures: The fair value of the futures contract is derived from a model known as the Cost of Carry model. This model gives the fair value of the futures contract. Cost of Carry Model: F=S (1+r-q) t Where F – Futures Price S – Spot price of the Underlying r – Cost of Financing q – Expected Dividend Yield T – Holding Period. FUTURES TERMINOLOGY: Spot price: The price at which an asset trades in the spot market. Futures price: The price at which the futures contract trades in the futures market.Contract cycle: The period over which a contract trades. The index futures contracts on the NSE have one-month, two-months and three-month expiry cycles which expire on the last Thursday of the month. Thus a January expiration contract expires on the last Thursday of January and a February expiration contract ceases trading on the last Thursday of February. On the Friday following the last Thursday, a new contract having a three-month expiry is introduced for trading. Expiry date: It is the date specified in the futures contract. This is the last day on which the contract will be traded, at the end of which it will cease to exist. Contract size:The amount of asset that has to be delivered under one contract. For instance, the contract size on NSE’s futures market is 200 Nifties. Basis: In the context of financial futures, basis can be defined as the futures price minus the spot price. There will be a different basis for each delivery month for each contract. In a normal market, basis will be positive. This reflects that futures prices normally exceed spot prices. Cost of carry: The relationship between futures prices and spot prices can be summarized in terms of what is known as the cost of carry. This measures the storage cost plus the interest that is paid to finance the asset less the income earned on the asset. Open Interest:Total outstanding long or short positions in the market at any specific time. As total long positions for market would be equal to short positions, for calculation of open interest, only one side of the contract is counted. OPTIONS DEFINITION: Option is a type of contract between two persons where one grants the other the right to buy a specific asset at a specific price within a specified time period. Alternatively the contract may grant the other person the right to sell a specific asset at a specific price within a specific time period. In order to have this right, the option buyer has to pay the seller of the option premium. The assets on which optio ns can be derived are stocks, commodities, indexes etc.If the underlying asset is the financial asset, then the options are financial options like stock options, currency options, index options etc, and if the underlying asset is the non-financial asset the options are non-financial options like commodity options. PROPERTIES OF OPTIONS: Options have several unique properties that set them apart from other securities. The following are the properties of options: ? Limited Loss ? High Leverage Potential ? Limited Life PARTIES IN AN OPTION CONTRACT: 1. Buyer of the Option: The buyer of an option is one who by paying option premium buys the right but not the obligation to exercise his option on seller/writer. . Writer/Seller of the Option: The writer of a call/put options is the one who receives the option premium and is there by obligated to sell/buy the asset if the buyer exercises the option on him. . TYPES OF OPTIONS: The options are classified into various types on the basis of var ious variables. The following are the various types of options: I) On the basis of the Underlying asset: On the basis of the underlying asset the options are divided into two types: ? INDEX OPTIONS: The Index options have the underlying asset as the index. ? STOCK OPTIONS: A stock option gives the buyer of the option the right to buy/sell stock at a specified price.Stock options are options on the individual stocks, there are currently more than 50 stocks are trading in this segment. II. On the basis of the market movement: On the basis of the market movement the options are divided into two types. They are: ? CALL OPTION: A call options is bought by an investor when he seems that the stock price moves upwards. A call option gives the holder of the option the right but not the obligation to buy an asset by a certain date for a certain price. ? PUT OPTION: A put option is bought by an investor when he seems that the stock price moves downwards. A put option gives the holder of the op tion right but not the obligation to sell an asset by a certain date for a certain price. III. On the basis of exercise of Option:On the basis of the exercising of the option, the options are classified into two categories. ? AMERICAN OPTION: American options are options that can be exercised at any time up to the expiration date, most exchange-traded options are American. ? EUROPEAN OPTION: European options are options that can be exercised only on the expiration date itself. European options are easier to analyze than American options. PAY-OFF PROFILE FOR BUYER OF A CALL OPTION: The pay-off of a buyer options depends on the spot price of the underlying asset. The following graph shows the pay-off of buyer of a call option: S-Strike priceOTM – Out of the Money SP -Premium/LossATM – At the MoneyE1 – Spot price 1 ITM – In The Money E2 – Spot price 2 SR – profit at spot price E1 CASE 1: (Spot price > Strike Price) As the spot price (E1) of the underlying asset is more than strike price (S). The buyer gets the profit of (SR), if price increases more than E1 than profit also increase more than SR. CASE 2: (Sport price < Strike Price) As the spot price (E2) of the underlying asset is less than strike price (s). The buyer gets loss of (SP), if price goes down less than E2 than also his loss is limited to his premium (SP). PAY – OFF PROFILE FOR SELLER OF A CALL OPTION:The pay-off of seller of the call option depends on the spot price of the underlying asset. The following graph shows the pay-off of seller of a call option: [pic] S-Strike priceITM – In the Money SP – Premium/profitATM – At the Money E1-Spot price 1OTM – Out of The Money E2 -Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S). The seller gets the profit of (SP), if the price decreases less than E1 than also profit of the seller does not exceed (SP). CASE 2: (Spot price > Strike price) As the spot price (E2) of the underlying asset is more than strike price (S).The seller gets loss of (SR), if price goes more less than E2 than the loss of the seller also increase more than (SR). PAY-OFF PROFILE FOR BUYER OF A PUT OPTION: The payoff of buyer of the option depends on the spot price of the underlying asset. The following graph shows the pay off of the buyer of a call option: [pic] S-Strike priceITM-In The Money SP-Premium/profitOTM-Out of The Money E1-Spot price 1ATM-At The Money E2-Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S). The buyer gets the profit of (SR), if price decreases less than E1 than the profit also increases more than (SR). CASE 2: (Spot price > Strike price)As the spot price (E2) of the underlying asset is more than strike price (s), the buyer gets loss of (SP), if price goes more than E2 than the loss of the buyer is limited to his premium (SP). PAY-OFF PROFILE FOR SELLER OF A PUT OPTION: The pay off of seller of the option depends on the spot price of the underlying asset. The following graph shows the pay-off of seller of a put option: [pic] S-Strike priceITM-In The Money SP-Premium/profitATM-At The Money E1-Spot price 1OTM-Out of The Money E2-Spot price 2 SR-profit at spot price E1 CASE 1: (Spot price < Strike price) As the spot price (E1) of the underlying asset is less than strike price (S), the seller gets the loss of (SR), if price decreases less than E1 than the loss also increases more than (SR). CASE 2: (Spot price > Strike price)As the spot price (E2) of the underlying asset is more than strike price (S), the seller gets profit of (SP), if price goes more than E2 than the profit of the seller is limited to his premium (SP). FACTORS AFFECTING THE PRICE OF AN OPTION: The following are the various factors that affect the price of an option. They are: Stoc k price: The pay-off from a call option is the amount by which the stock price exceeds the strike price. Call options therefore become more valuable as the stock price increases and vice versa. The pay-off from a put option is the amount; by which the strike price exceeds the stock price. Put options therefore become more valuable as the stock price increases and vice versa. Strike price:In the case of a call, as the strike price increases, the stock price has to make a larger upward move for the option to go in-the –money. Therefore, for a call, as the strike price increases, options become less valuable and as strike price decreases, options become more valuable. Time to expiration: Both Put and Call American options become more valuable as the time to expiration increases. Volatility: The volatility of n a stock price is a measure of uncertain about future stock price movements. As volatility increases, the chance that the stock will do very well or very poor increases. Th e value of both Calls and Puts therefore increase as volatility increase.Risk-free interest rate: The put option prices decline as the risk – free rate increases where as the prices of calls always increase as the risk – free interest rate increases. Dividends: Dividends have the effect of reducing the stock price on the ex dividend date. This has a negative effect on the value of call options and a positive affect on the value of put options. PRICING OPTIONS The Black Scholes formulas for the prices of European Calls and puts on a non-dividend paying stock are: CALL OPTION: C = SN (D1)-Xe-rtN(D2) PUT OPTION: P = Xe-rtN(-D2)-SN (-D2) C – VALUE OF CALL OPTION S – SPOT PRICE OF STOCK X – STRIKE PRICE r – ANNUAL RISK FREE RETURN – CONTRACT CYCLE D1 – (ln(s/x) +(r+ )/2) t)/ D2 – D1- Options Terminology: Strike Price: The price specified in the options contract is known as the Strike price or Exercise price. Option Premium: O ption premium is the price paid by the option buyer to the option seller. Expiration Date: The date specified in the options contract is known as the expiration date. In-The-Money Option: An in the money option is an option that would lead to a positive cash inflow to the holder if it is exercised immediately. At-The-Money Option: An at the money option is an option that would lead to zero cash flow if it is exercised immediately. Out-Of-The-Money Option:An out of the money option is an option that would lead to a negative cash flow if it is exercised immediately. Intrinsic Value of an Option: The intrinsic value of an option is ITM, if option is ITM. If the option is OTM, its intrinsic value is ZERO. Time Value of an Option: The time value of an option is the difference between its premium and its intrinsic value. DESCRIPTION OF THE METHOD: The following are the steps involved in the study. 1. Selection of the scrip: The scrip selection is done on a random basis and the scrip selec ted is RELIANCE COMMUNICATIONS. The lot size of the scrip is 500. Profitability position of the option holder and option writer is studied. 2. Data collection:The data of the RELIANCE COMMUNICATIONS has been collected from the â€Å"The Economic Times† and the internet. The data consists of the March contract and the period of data collection is from 30th December 2008 to 31st January 2008. 3. Analysis: The analysis consists of the tabulation of the data assessing the profitability positions of the option holder and the option writer, representing the data with graphs and making the interpretations using the data. ANALYSIS ANALYSIS The objective of this analysis is to evaluate the profit/loss position of option holder and option writer. This analysis is based on the sample data, taken RELIANCE COMMUNICATIONS scrip. This analysis considered the March ending contract of the SBI.The lot size of SBI is 500. The time period in which this analysis is done is from 30/12/2007 To 31/0 1/2008 Price of SBI in the Cash Market. |DATE |MARKET PRICE | | | | |30-Dec-07 |685. 1 | |31-Dec-07 |714. 65 | |1-Jan-08 |695. 6 | |2-Jan-08 |706. 4 | |3-Jan-08 |717. 1 | |4-Jan-08 |713. 45 | |7-Jan-08 |726. 6 | |8-Jan-08 |724. 05 | |9-Jan-08 |720. 85 | |10-Jan-08 |742. 1 | |11-Jan-08 |736. | |14-jan-08 |734. 1 | |15-Jan-08 |731. 75 | |16-Jan-08 |728 | |17-Jan-08 |726. 2 | |18-Jan-08 | | | |727. 8 | | | | |21-Jan-08 |722. 7 | |22-Jan-08 |693. 25 | |23-Jan-08 |657. 7 | |24-Jan-08 |664. 4 | |28-Mar-08 |665. 6 | |29-Jan-08 |641. 7 | |30-Jan-08 |661. 05 | |31-Jan-08 |654. 8 | pic] The closing price of SBI at the end of the contract period is 654. 80 and this is considered as settlement price. The following table explains the amount of transaction between option holder and option writer. ? The first column explains the trading date. ? The second column explains the market price in cash segment on that date. ? The call column explains the call/put options which are considered. Every call/ put has three sub columns. ? The first column consists of the premium value per share of the contracts, second column consists of the volume of the contract, and the third column consists of total premium value paid by the buyer. ?NET PAYOFF FOR CALL OPTION HOLDERS AND WRITERS |MARKET PRICE |CALLS |VOLUME (‘000) |PREMIUM (‘000) |PROFIT TO HOLDER|NET PROFIT TO |NET PROFIT TO | | | | | |(‘000) |HOLDER (‘000) |BUYER (‘000) | | | | | | | | | |654. 8 |640 |199. 5 |3634. 15 |2952. 6 |-681. 55 |681. 55 | |654. 8 |660 |1463 |21600. 35 |0 |-21600. 35 |21600. 35 | |654. |680 |2008 |51831. 53 |0 |-51831. 525 |51831. 525 | |654. 8 |700 |3297 |85603. 45 |0 |-85603. 45 |85603. 45 | |654. 8 |720 |3796. 5 |74881. 93 |0 |-74881. 925 |74881. 925 | |654. 8 |740 |2309. 5 |30208. 4 |0 |-30208. 4 |30208. 4 | OBSERVATIONS AND FINDINGS: ? Six call options are considered with six different strike prices. ? The current market price on the expiry date is Rs. 654. 80 and this is c onsidered as final settlement price. The premium paid by the option holders whose strike price is far and greater than the current market price have paid high amounts of premium than those who are near to the current market price. ? The call option holders whose strike price is less than the current market price are said to be In-The-Money. The calls with strike price 640 are said to be In-The-Money, since, if they exercise they will get profits. ? The call option holders whose strike price is less than the current market price are said to be Out-Of-The-Money. The calls with strike price of 660, 680,700,720,740 are said to be Out-Of-The-Money, since, if they exercise, they will get losses. [pic] FINDINGS:The premium of the options with strike price of 700 and 720 is high, since most of the period of the contract the cash market is moving around 700 mark. [pic] FINDINGS: ? The contracts with strike price 660, 680, 700, 720, 740 get no profit, since their strike price is more than the settlement price. ? The contract with strike price 640 gets the profit. NET PAY OFF OF PUT OPTION HOLDERS AND WRITERS. |MARKET PRICE |PUTS |VOLUME (‘000) |PREMIUM (‘000) |PROFIT TO HOLDER |NET PROFIT TO HOLDER |NET PROFIT TO WRITER| | | | | |(‘000) |(‘000) |(‘000) | | | | | | | | | |654. |600 |25 |47. 625 |0 |-47. 625 |47. 625 | |654. 8 |640 |323. 5 |993. 5 |0 |-993. 5 |993. 5 | |654. 8 |660 |1239. 5 |9506. 575 |6445. 4 |-3061. 175 |3061. 175 | |654. 8 |680 |1399. 5 |21894 |35267. 4 |13373. 4 |-13373. 4 | |654. 8 |700 |1858 |30871. 28 |83981. 6 |53110. 325 |-53110. 325 | |654. |720 |1468. 5 |23727. 83 |95746. 2 |72018. 375 |-72018. 375 | | | | | | | | | OBSERVATIONS AND FINDINGS: ? Six put options are considered with six different strike prices. ? The current market price on the expiry date is Rs. 654. 80 and this is considered as the final settlement price. ? The premium paid by the option holders whose strike price is far and greater than the current market price have paid high amount of premium than those who are near to the current market price. The put option holders whose strike price is more than the current market price are said to be In-The-Money. The puts with strike price 660,680,700,720 are said to be In-The-Money, since, if they exercise they will get profits. ? The put option holders whose strike price is less than the current market price are said to be Out-Of-The-Money. The puts with strike price of 600,640 are said to be Out-Of-The-Money, since, if they exercise their puts, they will get losses. [pic] FINDINGS: ? The premium of the option with strike price 700 is higher when compared to other strike prices. This is because of the movement of the cash market price of the SBI between 640 and 720. [pic] FINDINGS: The put option holders whose strike price is more than the settlement price are In-The-Money. ? The put options whose strike price is less than the settlement price are Out-Of-The-Money. DATA OF SBI THE FUT URES OF THE JANUARY MONTH |DATE |FUTURES CLOSING PRICE (Rs. ) |CASH CLOSING PRICE (Rs. ) | | | | | |30-Dec-07 |689. 6 |685. 1 | |31-Dec-07 |720. 65 |714. 65 | |1-Jan-08 |700. 5 |695. 6 | |2-Jan-08 |710. 9 |706. 4 | |3-Jan-08 |720. 85 |717. 1 | |4-Jan-08 |716. 85 |713. 45 | |7-Jan-08 |729. 2 |726. 6 | |8-Jan-08 |728. 25 |724. 05 | |9-Jan-08 |723. 35 |720. 5 | |10-Jan-08 |745. 3 |742. 1 | |11-Jan-08 |741. 35 |736. 9 | |14-Jan-08 |738. 95 |734. 1 | |15-Jan-08 |735. 7 |731. 75 | |16-Jan-08 |733. 15 |728 | |17-Jan-08 |730. 75 |726. 2 | |18-Jan-08 |732. |727. 8 | |21-Jan-08 |725. 25 |722. 7 | |22-Jan-08 |695 |693. 25 | |23-Jan-08 |660. 1 |657. 7 | |24-Jan-08 |666. 7 |664. 4 | |28-Jan-08 |667. 75 |665. 6 | |29-Jan-08 |642. 7 |641. 7 | |30-Jan-08 |662. 5 |661. 05 | |31-Jan-08 |655. 95 |654. 8 | [pic] OBSERVATIONS AND FINDINGS: The cash market price of the SBI is moving along with the futures price. ? If the buy price of the futures is less than the settlement price, then the buyer of the f utures get profit. ? If the selling price of the futures is less than the settlement price, then the seller incur losses. SUMMARY, CONCLUSIONS AND RECOMMENDATINONS SUMMARY ? Derivatives market is an innovation to cash market. Approximately its daily turnover reaches to the equal stage of cash market. Presently the available scrips in futures are 89 and in options segment are 62. ? In cash market the profit/loss of the investor depends on the market price of the underlying asset. The investor may incur huge profits or he may incur huge losses. But in derivatives segment the investor enjoys huge profits with limited downside. ? In cash market the investor has to pay the total money, but in derivatives the investor has to pay premiums or margins, which are some percentage of total money. ? Derivatives are mostly used for hedging purpose. ? In derivative segment the profit/loss of the option holder/option writer is purely depended on the fluctuations of the underlying asset. CONCLUSIONS In bullish market the call option writer incurs more losses so the investor is suggested to go for a call option to hold, where as the put option holder suffers in a bullish market, so he is suggested to write a put option. ? In bearish market the call option holder will incur more losses so the investor is suggested to go for a call option to write, where as the put option writer will get more losses, so he is suggested to hold a put option. ? In the above analysis the market price of State Bank of India is having low volatility, so the call option writers enjoy more profits to holders. RECOMMENDATIONS ? The derivative market is newly started in India and it is not known by every investor, so SEBI has to take steps to create awareness among the investors about the derivative segment. In order to increase the derivatives market in India, SEBI should revise some of their regulations like contract size, participation of FII in the derivatives market. ? Contract size should be minimiz ed because small investors cannot afford this much of huge premiums. ? SEBI has to take further steps in the risk management mechanism. ? SEBI has to take measures to use effectively the derivatives segment as a tool of hedging. BIBLIOGRAPHY BIBLIOGRAPHY BOOKS: FUTURES AND OPTIONS – N. D. VOHRA, B. R. BAGRI DERIVATIVES CORE MODULE WORKBOOK – NCFM MATERIAL FUTURES AND OPTIONS – R. MAHAJAN WEBSITES: www. nseindia. com www. equitymaster. com www. peninsularonline. com NEWS EDITIONS: THE ECONOMIC TIMES BUSINESS LINE