Cofer – the Myth of the Latin Woman: I Just Met a Girl Named Maria

As Judith Ortiz Cofer says in her essay mixed cultural signals drive perpetuated certain stereotypes (49). Since whatsoeverthing coffin nail be natural in a set culture and offensive in a nonher, it is swooning to find a flesh of behaves that are misunderstood. This misunderstood is what promotes the existence of detriment. The stereotypes should be ignored and forgotten by good deal. Each individual should be judge by its work and personality, and not by its clothes, physical appearance or place of origin.People should come better about distinct culture before believe in stereotypes. As a Brazilian womanhood (and in that respectfore Latina). I can talk about the stereotype created about women from my country. Brazil is known for its association football team, carnival, and beautiful women. It seems nice characteristic to be identified with. Although, those characteristics perplex people believe that in Brazil the women are al counsellings or at least most of the time nak ed. Brazilian girls are believed to be easy ones, because they kiss in the mouth on the first date.In some countries (as the ones in Europe) people also believe the Brazilian women that move to there are all prostitutes. Those and much more related kind of stereotypes make the Brazilian women to endure a lot prejudice not notwithstanding as a Latin solely also as a Brazilian. It is very sad to know that people are so influence satisfactory but that is how it is. And it is very difficult to pitch such an old composition that is tie to the peoples mind. But we should not give up of the transformation.Cofer emphasizes that we cannot change this (the myth of Latina as whore, domestic or criminal) by legislating the way people look at us. The transformation, as I see it, has to legislate at a much more individual level (56). I fully endorse her idea about the change be do in an individual level. I believe that each Latin woman should try show with her own example of life and behave that the stereotypically idea that people have about Latinas is wrong.We must show them that we are misinterpreted because of the discrepancy between our cultures. Something that is natural to me can be vulgar to someone else. That is wherefore we should try to clarify our culture. We should make people understand it better and inhabit make judgment based on stereotypes. I assume that prejudice comes from the unknown. If a person knows more about the differences, he/she would be able to understand it better. And maybe the pattern created by the media and folklore about the Latinas would not be so easy accepted as a true.

Current legislations, guidelines, policies and procedures for safeguarding the welfare of children and young people Essay

Identify the current legislations, guidelines, policies and procedures for safeguarding the welfare of children and raw muckle including e-safety. Legislation covering child nurseion tin be divided into two main categories civil law and criminal law. The children and Young Persons movement 1933 This is an older piece of legislation of which some cancels are lock in in forced today. It intromits a list of offences against children, these are referred to as roll One offences.The Children fiddle 1989 The current child protection system is establish on the Children make out 1989. The introduction of this act was intended to be the around compressive and far reaching reform in child law in parliamentary history. The main aim of this law is to batten that the welfare of a child is always considered as the most important factor when do any decisions about the upbringing of a child. The act likewise considers the mind and stepings of the child in a situation and bases de cisions on whether the outcome would be better or worse for the child.It introduced the concept of parental responsibility. Two focus documents are available to help professionals to identify children that may be at risks and the steps to take to help prevent this occurring. These documents are intended to be spendd with The Children work on 1989. The first is called, Guidance on interagency cooperation under the Children Act 1989, which was first published in 1991. The second which was published in 2000 was titled The Framework for the assessment of children in need and their families.Below are listed the variations of the constitution throughout the UK. Safeguarding children working together under the Children Act 2004 This is the current guidance for Wales. The Children Order 1995 Northern Ireland. The Children Act 1995 Scotland. The United Nations Convention on the Rights of the Child 1989 This includes the right for a child to be protected from vilification, the righ t to articulate their views and have them listen to and the right to care and services for disabled children or children living away from home.The pitying Rights Act 1998 This protects the rights of all human beings, in the eyes of the law children are seen as human beings and therefore the Human Rights act covers their rights as well. The Education Act 2002 This was introduced to ensure that a schoolhouses governance body and LEA make arrangements for the safeguarding and welfare of children. The Adoption and Children Act 2002 This expands on the Children Act 1989 by including domestic violence in the definition of harm. The Children Act 2004 This new act didnt replace or amend the Children Act 1989, instead it set out the process for integrating services to children. get along acts that followed the 2004 Children Act include The Children and Adoption Act 2006, Children and Young Persons Act 2008, The Boarders, Citizenship and immigration Act 2009 and the Apprenticeships, Skills, Children and Learning Act 2009. Legislation to protect children from adults that pose a risk. The 1997 Sex Offenders Act Requires sex offenders to have their names and addresses added to the sex offenders register. The knowledgeable Offences Act 2003 This was introduced to update the legislation relating to offences against children.It included the offences of grooming, ab phthisis of position of place and trafficking. Further policies include The Female Genital Mutilation Act 2003, The Domestic Violence, aversion and Victims Act 2004 and the Serious Organised Crime and Police Act 2005. E-Safety A Schools e-Safety constitution reflects the importance it places on the safe use of instruction systems and electronic communications. e-Safety encompasses not only Internet technologies but also electronic communications via mobile phones, games consoles and wireless technology.It highlights the need to educate children and young people about the benefits, risks and respon sibilities of using information technology. * E-Safety concerns safeguarding children and young people in the digital world. * E-Safety emphasises learning to understand and use new technologies in a positive way. * E-Safety is less about restriction and more about genteelness about the risks as well as the benefits so we can feel confident online. * E-Safety is concerned with supporting children and young people to become safer online behaviours two in and out of school.The Internet is an unmanaged, open communications channel. The World wide-cut Web, email, blogs and social networks all transmit information using the Internets communication infrastructure internationally at low cost. Anyone can organise messages, discuss ideas and publish physical with little restriction. These features of the Internet make it an priceless resource used by millions of people every day. Some of the material on the Internet is published for an adult audience and can include violent and adult c ontent. Information on weapons, crime and racism may also be unsuitable for children and young people to access.Pupils need to develop critical skills to evaluate online material and learn that publishing personal information could compromise their security and that of others. Schools have a duty of care to enable pupils to use on-line systems safely. Schools need to protect themselves from legal challenge and ensure that staff work within the boundaries of professional behaviour. The law is catching up with Internet developments for example it is an offence to store images showing child abuse and to use email, text or instant messaging (IM) to groom children.Schools can help protect themselves by making it clear to pupils, staff and visitors that the use of school equipment for inappropriate reasons is unauthorised and ensure an Acceptable Use Policy is in place. E-Safety training is an essential element of staff induction and part of an on-going CPD programme. However, schools sho uld be aware that a disclaimer is not sufficient to protect a school from a claim of personal injury and the school needs to ensure that all reasonable actions have been taken and measures shake off in place to protect users. Legally an educational institutions e-safety policy ties into aggregate laws and legislation.

Dogs Make Good Companions

Dogs actualise good companions, because of the loyalty, unconditional love, friendship, and protection they outpouring. When you wake up in the aurora they dont reverence if you pitch morning breathe, bed head, and no make-up, after a long day stressful day, door to that tail-wagging groom to give you hugs and kisses because your home. It makes all Youre worries and stresses go right out the door. For instance, they testament always show unconditional love and loyalty. You might feel emotional, angry, or even talking out loud to yourself about your horrible day, who is at that place?Your dog, listening wagging its tail. They will never be judgmental, they dont cargon about what name brand clothes youre wearing, the car you drive, the field you live in, they will love you for you. If your late feeding them, or you brocaded your voice because they did something wrong, they wont complain and will always exculpate you. On a cold winter night they will be right in that location to be your snuggle buddy and keep you warm. another(prenominal) instance dogs can be good protectors of their family/owner and home.Next snip Youre out on a walk or in the approximate range with family and friends watch the reactions of dogs. If a person or animal argon get a little too close they will get that spry look, eyes wide open, ears at attention, watching the surroundings. When they feel a give carely threat, they get that vicious look, curled lips, fangs all out and making swinish noises through their nose, making sure, that person or animal knows they mean business concern when it comes to protecting Family/owner. When it comes to protecting their home, they will go to great lengths, even tolerant their liveliness.Do some research on how many dogs have saved their family from burglars, fires, deoxycytidine monophosphate Monoxide Statistics show that owners are less likely to be burglarized than non- dog owners are. Dogs scrape to alert, letting you know some thing is not wrong and for you to go investigate. Did you know dogs are also good for your health? Just petting or hugging with your dog can Relieve stress, lower blood pressure, and lower your burden rate. Taking your dog for a walk provide them the exercise, exactly youre also getting some cardio exercise in as well. Dogs perceive when youre not feeling well, staying by your side comforting you the opera hat way they now how. When youre emotionally drained or depressed, they are right there showing you love and support, letting you know its going to be all right, and they are there for you for matter what. Dogs roll in the hay making you smile, which is good for the soul. One final thought is dogs dont ask for much for the unconditional love, friendship, loyalty. Dogs are willing to give their life to protect their family. Dogs need very little care for the companionship they give you in return. Sure, they need food, water, and basic care effective like you, but all they wa nt is love, attention, and affection.Rather, its playing fetch, going for a walk, for a ride, or cuddling on the couch, doing little things, makes the companionship stronger. Just like any other friendship in your life, you have to make time and make it work. Now ask yourself a couple of questions. Do you have friends that give unconditional love? Do you have any friends there for you 24/7? Do you have friends that want to be slightly you when youre emotional, angry, and stressed? Are friends their when youre feeling sick? Dogs just may be the true friend and companion you never had. Thats why dogs make good companions.

Target Strategic Analysis

Corina Nava Pelton Strategic Management March, 2013 Chris Canolis I. buns Corporation American retailing high society headquartered in Minneapolis, Minnesota. steer is the second-largest discount retailer in the join States, empennage Wal-Mart. The heading drawing string discount installs range from 95,000 to 135,000 squ ar feet. extremely stub kitchen stove hypermarkets be approx. 174,000 sq. ft. proposes beginnings During the Panic of 1893 which ca utilized a eliminate in retail estate prices, the Westminster Presbyterian Church burned down, and because its insurance wouldnt repair the cost of a new building, the church was smell for revenue.Its congregation appealed to Dayton to bar absorb the empty corner crapper next to the demolished building from the church so it could rebuild. Dayton bought it and eventu exclusivelyy constructed a six-story building on that corner substantially deal in downtown Minneapolis. 1902, Dayton, looking for tenants, convinced Reu ben Simon Goodfellow Comp whatever to move its nigh Goodfellow department line into his newly-erected building. Goodfellow retired and sold his interest in the store to Dayton. The stores invoke was changed to the Dayton Dry Goods Company in 1903. 923, Daytons 43 year old male child David died, prompting George to start deferring parts of his cable to an separate son, Nelson Dayton. 1938, George Dayton passed away and Nelson Dayton take for granted the role of president of the Dayton Company, a $14 million business. 1944, it offered its workers a retreat policy, becoming one of the beginning stores in the join States to do so. 1962 the Dayton Company, utilize John F. Geisses concepts,(American Business Man who launched successful retail chains), open up its first aspire discount store located at 1515 West County course B in the Saint Paul suburb of Roseville, Minnesota. 969, in the akin year, stigmas p bent confederation, Dayton, merged with JL Hudson Company of Detro it and became Dayton-Hudson Corporation. 1978, the order acquired Mervyns and became the septetteth largest general merchandise retailer in the United States. scratch Stores opened eight new stores that year. 1982, it grow into the West Coast of the United States. 1986, the conjunction acquired 50 Gemco stores from Lucky Stores in California, t turn up ensembleowing invest Stores to become the dominant retailer in s placehern California as the chain grew to a meat of 246 units. 988, mark Stores expanded into the Northwestern United States. 1989, it expanded to the Southeastern United States where it entered Florida, Georgia, North Carolina, and South Carolina to a total of 399 units in 30 states with $7. 51 trillion in sales. 1990, it acquired Marshall Fields from BATUS Inc. 1995, patroniseside Stores opened its first Super- physical object hypermarket in Omaha, Nebraska. It launched the commit Guest Card, the discount retail industrys first store recognize card. 199 9, Dayton-Hudson acquired Fedco and its ten stores in a move to expand its Super- organize run theater into Southern California. 000, Dayton Hudson Corporation changed its name to order Corporation and its ticker symbol to TGT by and then, between 75 percent and 80 percent of the corporations total sales and shekels came from patsy Stores Daytons, Hudsons, Marshall Fields, and Mervyns were used to fuel the growth of station, which expanded to 977 stores in 46 states and sales r all(prenominal)ed $29. 7 one thousand million by the cobblers last of the year. 2001, it launched its online gift registry. 2004, locate Corporation denote its sale of the Marshall Fields to St. Louis, Missouri-based may Department Stores. heading Stores expanded to 1308 units and reached $46. 8 billion USD in sales. 2005, bespeak began operation in Bangalore, India. It reached 1397 units and $52. 6 billion in sales. 2006, Target completed locution of the Robert J. Ulrich Center in Embassy Golf Links in Bangalore, and Target aforethought(ip) to continue its expansion into India. 2009, Target expanded outside of the continental United States for the first sequence. Two stores were opened simultaneously on the island of Oahu in Hawaii, on with two stores in Alaska. 2010, Target announces its goal to give $1 billion to education causes and charities by 2015.Target began a nationwide closing of its remaining 262 garden centers, reportedly due to surder competition from home-im mountment stores, Wal-Mart and independent garden centers. 2011, Target announced its first ever international expansion, into Canada, when it purchased the leaseholds for up to 220 stores. The first City-Target opened in 2012. City-Target is the name for a s shop centerer-format, downtown Target store aimed at the urban market. The assortment volition be edited towards urban living, but will take on some of the alike products.The stores will still look and feel like Target but more will be mul tilevel stores in active landmark buildings, not the usual strip mall or stand-alone locations. _____________________________________________________________________________________ II. Companys Statements 1. Mission Statement Our accusation is to take for Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and chuck outional knob experiences by consistently fulfilling our Expect more. Pay Less send promise. 2. VisionTarget envisions vibrant thriving communities that they help, in which all residents defend inlet to social and pecuniary equity to ensure regular growth and a bulky stipulation plan to sustain success. 3. Values * Design for all Its our belief that considerable design is fun energetic, surprising and smart should be accessible and cheap for eachone. When we talk about our dedication to good design, we dont save mean how something looks, but as well how it satisfies a need, how it simplifie s your life, and how it makes you feel. * Great guest dish upIn stores or online, we work stark to ensure your Target shopping trip is unendingly enjoyable and exciting. How do we do it? Friendly service from team members tack together to assist with your list, fully stocked shelves and a speedy checkout execute outand thats just the start. * More for your money We think a lot about your budget and how to give you the best value every time you shop with us. In addition to our already low prices, we offer early(a) ways to save you money including price matching in our stores and an supernumerary 5%. * Fun and rewarding stupefy to workOur team is our greatest asset, so we invest in the growth and ontogeny of all team members, and allow fun in all we do. And were perpetrate to building a team that does the right thing for our communities, our shargonholders and, above all, our guests. * Legacy of giving and service Community giving isand always has beena cornerstone of our familiarity. We give our time, endowment and business strengths to make our communities strong, healthy and safe. We invest in career development and well-being of our team. And from the start, weve given 5 percent of our income, a freight that does not waver based on the economic climate. . Goals * To incorporate diversity into every facet of their business. * To make sure that the diversity of their employees mirror the diversity base in the communities in which they are located. * As a society To look to for and find the most qualified applicants who are high-performing, highly motivated, and bring with them respective(a) experiences and talents. * The goal of the councils is to jointly help individuals to further develop their careers at the very(prenominal) time as improving the Target work environment as a whole. To respect and value the individuality of all their team members and guests. Target forthwith * Target stores tend to attract younger and more enlightened an d affluent nodes than Wal-Mart, among different competitors. * The median Target shopper is 41 years old, the youngest of all major discount retailers that Target grapples directly against. * The median household income of Targets customer base is roughly $63,000. * Roughly 76% of Target customers are female. * More than 45% have children at home. * nearly 80% have attend college and 48% have completed college. 97% of American consumers recognize the Target Bulls eye logo. ________________________________________________________________________________________ III. External Analysis 1. Environmental Analysis a. Economics b. Demographics c. political 2. sedulousness 3. Competition 4. Opportunities and Threats ________________________________________________________________________________________ 1. Environmental Analysis a. Economics * Target plans to have between 100 and 150 stores open in Canada by 2014. The come with has in any case launched a new store concept plan cal led City-Target.These stores are aimed at urban shoppers who live in cities, so these stores wont carry big bulky items customers cant carry. The corporation has also done remodeling to stores so they now have fresh fire and grocery store items. All these new additions to the Target Corporation have been an aid in the growth of the company in the past years. * Target can access helpful economic trending entropy compiled by the Organization for Economic Cooperation & information (OECD), including economic forecasts for growth, weakness, instability, as well as GDP and aging indexes. Target stores are promptly growing and opening in almost every city in America and show no signs of downsizing. * To boost sales, the company has increasingly promoted its company issued credit & debit card. * As the economy has faltered, more consumers have become price-conscious and Target has adapted to such(prenominal) needs by creating $1 bins, oblation bulk paper product and household goods, and leprose back on home decor items. b. Demographics * Target shoppers have a median age of 46 the youngest among major retailers. The median household income of Target guests is $55,000. * Forty-three percent of Target shoppers have completed college. More than half(a) of Target guests are employed in professional or other managerial positions. * Eighty to ninety percent of Target guests are female. * 38 percent of guests have children at home or in a red shopping cart with them. This figure is consistently more than any other discount stores customer profile. c. G everyplacenmental * Long-standing commitment to equal opportunity Employment has change magnituded the diversity of the work force. In 2005, Target became the first national retailer to voluntarily decide to place all cough, cold and allergy products containing pseudo ephedrine behind the pharmacy counter. In stores where we do not have a pharmacy, products containing pseudo ephedrine will not be sold. * Target do es not sell real guns, or work guns that can be mistaken for real guns. * Refrain completely from use of child labor. Child labor as being below the lower limit legal working age according to local uprightness, or on a lower floor the age of 14, whichever is greater. Wage calculations are done in all factories to avouch that the workers are being paid according to local labor law as well as for all of the time worked. 2. Industry Target Corporation operates in the go industry, specifically in the Discount, Variety Stores sector. Target remains a high performer, with a market capitalization of 43. 2 billion dollars, second only to Wal-Mart. Market Positioning Analysis Industry Classification = Discount Department Store. Categories * Household * Pharmacy, beauty, personal care * Toys * Electronics * Music, movies, books profligate goods Apparel * Apparel for women, men, boys, and accessories * Food and Pet Supplies * Dry grocery, dairy, frozen food, beverages * home(a) Furnish ings, Furniture * Lighting * Kitchenware, small and Decor appliances, home decor * bathe and bath accessories. * Automotive 3. Competition Target faces strong competition from wholesalers such as Wal-Mart and Costco as well as department stores like Macys and Sears Holding Company. Nevertheless, it has secured a strong position in the market, holding a 33. 4% department store market share while the Super Target represents 3. % of the Warehouse Clubs & Super Centers in the US. a. Barriers to Entry Despite the grand network of suppliers needed to become a viable company in this sector, successfully adding a company to the mix in order to compete against the likes of BJS, Costco, Wal-Mart and Target is highly unlike. Especially because of the nature of the business- to go away all types of fiber items at a low cost, unless one angles to come in as niche discounter (like with the 99 cent/Dollar stores), there are enough barriers to entry in place to keep most companies out of the di scount retailer competition. b.Substitutes in that respect are very few substitutes for discounted retailers, thus making it a profitable industry. Either consumers shop at traditionalistic retail outlets with higher prices, or stay within the industry itself. c. Buyers though feeling the pinch of a weakened economy, are still looking towards Target and its peer competitors for the best products at the lower prices. While requisite in the sector has slowed small-scale, Target continues to perform well above industry. d. Suppliers undivided discount retailers have a vast network of suppliers from all over the globe and even under their own wet scar.Target has its own label for article of furniture and home goods that operates in Minnesota. Many of its competitions, including the Family Dollar Chain and the 99 Cent chain also have networks of suppliers, mostly in Asia, in addition of their own in-house suppliers. 4. Opportunities and Threats e. Opportunities * Global Expansio n * Entering untapped US Markets * Continued growth in private label products * Financial Services- (credit cards) * entreat for Top quality, luxury, comfort * Demand for organic products * Technology (Internet, credit cards, reservations) f. Threats * Costco and Wal-Mart are heavy competition. U. S. Economy * Economic forces effect many areas negatively, but are expected to improve. * Interest rates are rising * Increase in online shopping * Decreased Customer Spending ______________________________________________________________________________________ IV. Internal Analysis 1. Targets Strategic Business Units a. The Stores i. Target Discount Stores Is a chain of discount stores that are about 95,000 to 135,000 square feet, and carry hardliners, soft lines (clothing), and a limited amount of groceries, mostly non-perishable. Specifically, Target stores carry lothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, and hardware supplies. They also carry seasonal merchandise such as patio furniture during the spend and Christmas. ii. Super-Target Is a chain of hypermarkets that are about 174,000 sq. ft. (16,200 m2) and feature double entrances on one-story stores. These stores offer everything found in a regular Target as well as a full grocery selection, fresh produce, bakehouse and deli, with most locations having a Target Optical.Many Super Targets feature Starbucks Coffee, Pizza hut Express, taco Bell Express, Target Pharmacy, The Studio Target (a portrait studio), Target Photo, Target Mobile (a Wireless kiosk), and a Wells Fargo Bank or U. S. Bank. iii. Target City The Chicago store allocates approximately 55,000 sq ft (5,100 m2) to its sales floor. City Target stores carry groceries, prescriptions, cosmetics, clothing, electronics, toys, and apartment essentials such as furniture, linens, and kitchen utensils. current items too bulky for urban apartments or for customers to carry are not stocked in City Target stores. v. Target Greatland Is a chain of general merchandise superstores, with a size of about 150,000 square feet, they carry a larger selection of general merchandise than basic Target store however, they do not have a full-line of groceries like meat, bakery, deli, produce and dairy. b. Financial and Retail Services (FRS) Formerly Target Financial Services (TFS) issues Targets credit cards, known as the Target RED card (formerly the Target Guest Card), issued by means of Target National Bank (formerly Retailers National Bank) for consumers and through Target Bank for businesses.The Target Debit Card withdraws funds from the customers real checking account, and allows for up to $40 cash back. The debit card allows customers to save phoebe bird percent of each purchase, as well as designate a school for Targets Take Charge of Education program, and accumulate pharmacy rewards. c. Target Sourcing Serv ices (TSS) This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. TSS has 27 full-service offices, 48 quality-control offices, and seven concessionaires located throughout the world.TSS employs 1,200 people. d. Target Commercial Interiors Provides design services and furniture for office space and originated in the home furniture department at Daytons. Currently, Target Commercial Interiors has an unusually high market share of stack d/1000 business customers, and are expanding to attract small to mean(a) sized businesses, as well as home offices. e. Target Brands Owns and oversees the companys private label products, including the grocery shops Archer Farms and Market Pantry. f. Target Forensic ServicesTarget also operates two sophisticated criminal forensics laboratories, one at its headquarters and the other in Las Vegas. Originally, the lab was created with the role of investigating intern al instances of theft and pasquinade and other criminal actions that have occurred on its own properties. Eventually, the company began offering pro bono services to law enforcement agencies across the country. Targets Forensic Services has aid agencies at all levels of government, including federal agencies such as the United States deep Service, Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation.The labs have become such a popular resource for law enforcement that Target has had to restrict its aid to violent felonies. g. Target. com Owns and oversees the companys e-commerce initiatives, such as the Target. com domain. Founded in early 2000 as invest direct. 2. Financial Analysis (Also Attached) 3. Strengths and Weaknesses a. Strengths * bulletproof Marketing Initiatives * Brand Quality * leaders Market Presence * Going Green Trend * Online shopping with tolerant shipping to the local store * Design-trend * Innovative Marketing Techniques * Act ive cordial Media * Favorable Real Estate Locations Size and Cost Advantages * Customer truth at Target is Essential * Target Has Efficient Operations * In Store Credit Card b. Weaknesses * High employee turnover at store level * Food margins lower than general merchandise * Stores vary little by region * Their store brand can be the same price as well-known brands item * None or no enough self-service register * No whole sale. c. Financial trends and projections Target Corp. (TGT) may represent one of the best choices in the retail sector. There are many pluses to consider regarding this retail stalwart given todays rapidly changing retail environment.Target is much more than its 1,787 retail stores in the United States and Canada. Targets credit operations and rapidly evolving online presence both offer strong prospects for growth. From a fundamental perspective, Target appears attractively valued on many fronts. Although the company trades at a below-market valuation, even more importantly it currently trades at a strong discount to the quality premium that the market has historically awarded their shares. As a result, Target Corp. offers an above-market dividend yield of 2. 1%. That has grown on average, by close to 20% per annum since calendar year 1999.During the quintet years time frame, the earnings growth of 10. 6% remains consistent with Targets longer-term historical growth achievements. The fact that Targets price (the black line) is feeling its intrinsic value (the orange line) illustrates that there exists good value in their shares. Projections The consensus of 19 analysts reporting to Standard & Poors Capital IQ expect Target to grow earnings at the rate of 10% in fiscal 2013, 15% in fiscal 2014, and 12% thereafter out to calendar year 2018 (see Chg/Yr at the bottom of the graph).If these estimates were to prove true, then a current position in Target offers the dominance to generate returns in excess of 13% per annum over the next five y ears. d. Strategic key factors (SKFs) Compared together, Wal-Mart and Target are very close competitors. They are all retail-variety discount stores making their existence known throughout the world, except Target, is newer in the global market. These companies are constantly vying for the reputation as the lowest priced retailer.In the competitive profile matrix, the most critical success factor would be advertising Target does a lot more advertising then Wal-Mart and Kmart. Price competitiveness, Wal-Mart, remains above all competitors. Product quality, Targets products tend to be top brand products. Customer loyalty many people prefer better products no matter how much it costs, particularly if they get other benefits they might not get elsewhere, such as, customer service, store scavengeness, more visual organization appeal, etc. _____________________________________________________________________________________ V. Long endpoint Objectives and Strategies 1. Objectives * Th e companys long-term objective is to attain $100 billion or more in sales and $8. 00 or more in earnings per share by 2017. * Target plans to donate more than $500 million by the end of 2015 to support education, doubling its support to-date, for a total of more than $1 billion. The financial commitment is part of Targets new adaptation initiative, Target Read With MeSM, aimed at destiny more U.S. children read proficiently by the end of third grade. As part of the initiative, Target also announced a reading pledge, a donation of up to 2 million books to kids in need, and plans for an innovative reading center that will reach communities across the country through a physical and virtual presence. 2. Strategies * Target has partnered with other fast-food chains like Taco Bell and Pizza Hut, again to cater to consumer desires for food while they shop, hoping to increase same store sales.The fact that Target has been able to infiltrate the urban market at a much better rate than Wal- Mart has helped to make these strategical partnerships successful. * Targets efficient marketing, multi-channel strategy, product innovation, compelling determine strategy, and new merchandise assortments, should drive comparable-store sales and operating margins in the long term. We expect the company to gain market share, and believe that more focalisation on consumable items should boost sales and earnings in a sluggish consumer environment. ______________________________________________________________________________________ VI.Implementing outline Integral to the success of the corporate strategy is what the company prides itself in the most, its pioneering nature in store design. Target designs their stores to be easy and intuitive to shop, with related departments conveniently placed next to each other (decor next to home improvement, toys next to sporting goods) and a data track central aisle to speed you on your way. They also work hard to make sure the shopping expe rience is consistently enjoyable, with a clean environment, friendly team members and feel-good details on all sides. This commitment to excellence, to chic and chic, yet affordable items presented with the user in mind has allowed the company to gain and maintain a strong foothold in the industry, carving out its own niche and distinguishing it from competitors. The companys strategy has also allowed Target to remain flexible and able to change significantly with its consumers, allowing it to seek unanimous growth opportunities in various branches and extensions of the brand. Targets performance can be attributed to many things, including a corporate decision to follow a path of brand extension and cautioned expansion.Target has created a corporate culture conducive to a constant call of innovation and a group of people who are affiliated to the success of the brand. Target employees praise the flexible corporate structure that offers commonplace chances for promotion. 1. Funct ional Areas a. Management Most directors have established a good working relationship with one another through previous business dealings. They are educated and successful business people and all directors and staff. Strong Management Leadership in Target Corporations executive director office that provides leadership for all divisions.The divisions are encouraged to share advances in technology and coordinate purchasing and financial worry. Target Corporation has go through accelerated growth in sales and earnings under the management leadership of Robert Ulrich, Chair CEO. b. Marketing The Marketing Planning team identifies marketing opportunities and develops integrated marketing campaigns. Additional responsibilities include writing creative blueprints, maturation media plans, overseeing project execution and managing budgets.The Marketing Creative team communicates the Target brand through various advertising media and campaign strategies including in-store marketing, prom otions and packaging. c. Human Resource Targets philosophy is an example of the resource based perspective of strategic human resource management (HRM), in which a firms collective human resources are believed to have implications for firm performance and provide a unique source of competitive advantage that is difficult to replicate. The form-only(prenominal) mission of Targets HR organization is to drive company performance by building a fast, fun, and friendly team committed to excellence. To fulfill this mission, over the past four years the HR conk has translated Targets competitive strategy into four core HR strategies and processes in the following areas * Organizational culture * Staffing * Employee development * Employee retention d. Strategy and Research The Strategy and Research group explores new business opportunities, strengthens existing business relationships, and applies consumer insight to marketing messages. The Market Research team analyzes shopping behavior th rough focus group interviews and observation.The Strategy team uses the resulting data along with other tools to recommend changes regarding product mix, content, display and marketing. Target gives back to the community * Target ranked No. 22 in event Magazines Worlds Most Admired Companies for 2010, largely in part to the donation efforts of the company as a whole. * Target donates around 5 percent of its pre-tax operating profit it gives over $3 million a week to the communities in which it operates. * Target gives a percentage of charges from its Target Visa to schools designated by the cardholders.To date, Target has given over $150 million to schools across the United States. * Target House complex in Memphis, Tennessee, a long-term housing etymon for families of patients at the citys St. Jude Childrens Research Hospital. The corporation led the way with more than $27 million in donations, which made available 96 fully equipped apartments for families needing to stay at St. Jude over 90 days. * Target donates to local salvation Army chapters through its grant program and annually to the United mien of America. * During disasters, Target has been a major benefactor for relief efforts.It also allowed its store properties in the affected area to be used as need centers for relief organizations. * Target will often donate its unused, returned or seasonal merchandise (particularly clothing) to Goodwill Industries. Bibliography Capstone Analysis Target. Capstone Analysis Target. N. p. , n. d. Web. 25 Mar. 2013. Carnevale, Chuck. Target Corp Offers Solid Value And An Above Market Yield. Forbes. Forbes Magazine, 15 Mar. 2013. Web. 27 Mar. 2013. Corporate Fact Sheet. Fact Sheet Quick Facts About Target. N. p. , n. d. Web. 4 Mar. 2013. Target Corporation. Wikipedia. Wikimedia Foundation, 23 Mar. 2013. Web. 23 Mar. 2013. The History of Corporate. Target Corporation. N. p. , n. d. Web. 23 Mar. 2013. Target Corporate Social Responsibility, Careers, Press, Investors. Target Corporate Social Responsibility, Careers, Press, Investors. N. p. , n. d. Web. 24 Mar. 2013. Target Corporation Company Analysis and Evaluation. Yahoo Contributor Network. N. p. , n. d. Web. 25 Mar. 2013. WikiWealth. Target (TGT) SWOT Analysis -. N. p. , n. d. Web. 24 Mar. 2013

Supporting Positive Behaviour

1. 1 Describe the Policies and Procedures of the stage place relevant to promoting Children and Young Peoples despotic demeanor. Every panorama should down a behaviour form _or_ system of government, in England, it is a legal indispensableness for early eld setting. This is a document to promote a po impersonateivistic behaviour of children and adults involved in the setting, it get out help all round to know what we should do in different situations.As a part of this policy there provide also be procedures for provide to follow, such as, video display respect to children and early(a) adults or, giving a explanation to the child who is surfaceing it difficult to observe boundaries or, being a incontrovertible role clay sculpture with appropriate behaviour. Also, the policy should detail the strategies that will never be apply in the setting. The codes of conduct relate to the behaviour of staff as intumesce as the behaviour of children. These moldiness be manag ed in a elbow room appropriate for children age, stage of development and individual needs.For the staff, the code of conduct will include, for example, keep backing calm to stop children hurting each other or behaving in a unsafe way, such as, listening to both sides of the storey in a conflict or, not make any detrimental comments in front of the children. For children, the codes of conduct ar round playing safely, respecting others or taking turns. These codes be discussed with children making a Golden Rules, for example, please fling no dischargening or we should share toys with our friends this helps them to take responsibility for their behaviour and they feel part of the process.To make childrens positive behaviour we will use Rewards, it is based on the idea that, if they receive approval, they are plausibly to want to repeat that behaviour There are many other(prenominal) types of rewards that break away well with children. Praise is a very effective way of reinforcing positive behaviour, saying to children well d unmatchable or good boy/ misfire helps them to know that they fix ushern positive behaviour and stating undecidedly what it is that is good, e. g. Thank you for sharing the toy, that was very kind. Attention is one of the exceed slipway of reinforcing positive behaviour.Making eye contact, smiling or nod, it helps the child to know that we have seen what they have done. In my setting, at the end of each session, teachers ask children who has followed the golden rules that twenty-four hour period and they get a smiley face. The children are invited to sit in the fairytale tone down or on the fairytale step. Sanctions will help us to oppose to inappropriate behaviour. For example, saying no in a quiet notwithstanding firm way or, explaining the consequences of actions to their level of understanding helps children to understand why they moldiness no carry on with their behaviour.Rewards and Sanctions should be used a ppropriately and fairly. For relations with conflict and inappropriate behaviour we may use different strategies to show that we can manage that situation. For example, ignoring the behaviour, if children are not getting any solvent from the adult, they will then change what they are doing, when they stop that behaviour we moldiness give them plenty of positive attention. To removal equipment, this sends a message to children that what they are doing is not unobjectionable or safe. Also we can use facial readion to make children realise that what they are doing is not acceptable.Guidance on cellular inclusion will be a tool to collate all policy relating to all children with additional needs as Special Education ineluctably or, Gifted and Talented, also the nursery has a policy of having available to all, a variety of items which reflect the cultural diversity of our country. The nursery displays many pictures and posters of children and multitude from all areas of the world t o reflect the inclusion policy. There are many puzzles and other materials available which reflect our diverse society. We want children recognise that received actions are right and that other are wrong.Children must be promote to recognise that determent, fighting or hurting are not acceptable behaviour and they will not be tolerated. Anti-bullying policy is to ensure that children catch out in a safe, supportive and caring environment, without fear of being bullied. blustering(a) is a complex issue and takes many forms (racial, sexual, disability, ). It can be physical, literal or emotional and can be cause serious psychological damage. A child often bullies for a reason, it is important to try to find out why a child may be bullying others, usually a child that is bullying has some personal encumbrance that needs addressing.Biting policy will follow in the event of a child being bitten. Biting is a form of behaviour that is oddly prevalent in children whose language skil ls are only just maturation and can often be an expression of frustration because they cannot yet express their feeling and it can become a habit. In this cause we must act immediately, to explain to the biting child why biting is unacceptable, that it hurts the other child and show the mark. Remove the biting child from the circumstances and keep him busy at all times. We will always inform the parents about the incident and should keep confidentiality.Attendance policy is usually part of a schooldayss code conduct because childrens education can be affected if they do not assure regularly or are often later for lessons, being absent from the school means a lost learning opportunity. To ensure that each child is encouraged to attend from the first day that they enrol at reception. However, in an early years setting, this is not likely to be part of a behaviour policy. In any case, there must be a time subordination input and output. 1. 2 In your own words describe what your set ting behaviour policy expects from adults and children.In my setting we believe that children grow up best when their personal, social and emotional needs are met and where there are clear expectations for their behaviour. The aim is to teach children to behave in socially acceptable ways and to understand the needs and rights of others. To help children to learn to empathise with others, understanding that they have feelings too. Where children behave in inconsiderate way, we help them to understand the outcomes of their action and support them in learning how to cope more appropriately.All staff, volunteers and students must provide a positive role model of behaviour by treating children, parents and one another with friendliness, care and courtesy. Also we must use positive strategies to resolve any inconsiderate behaviour, by helping children to find solutions in ways are appropriate for their age and stage of development. We must be calm and affected role helping to manage chi ldrens feelings. 1. 3 Describes with examples the importance of all staff consistently and fairly applying boundaries and rules for children and immature peoples behaviour.It is very important that all staff consistently and fairly apply boundaries and rules for childrens and young peoples behaviour. For example, if we want to teach children that they must eat posing and not playing, all staff must apply the same rules every single day in the lunch time, not allowing toys and remind them to sit down when they stand up, because if children with a staff member can run and play while they eat but with another member they must eat sitting. They are confused about this change in the rules from one day to another and they cannot know which behaviour is the correct.

Primal Leadership Case Essay

The article Primal Leadership centres around sueed up intelligence and the authors investigation into how a attractors mood or emotional modality filters done the organisation and sess affect the bottom-line results. If a draw is able to see this, they can monitor their own moods through self aw beness, change them w presentfore and act in the steerings that will boost others moods which in invert will helper the societys performance. Studies show that when a draw is in a happy mood then the people contact them view things in a more positive light. An upbeat surround fosters mental efficiency making people better at staying focussed, retaining discipline and therefore better at their jobs. Emotional intelligence affects the whole conjunctions performance, so it would be easy to assume that a four-in-hand with a positive offlook or disposition would raise the companys performance.But emotional leading isnt just off- strike or putting on a game face any day, it i s necessary to understand the impact you have on other employees as a leader. The more we act a certain way for modeling happy the more the behaviour becomes ingrained in our brain circuitry, and the more we will continue to feel and act that way. The key points made in Primal Leadership argon covered by the authors in the pentad step political platform they recommend to help leaders earn higher levels of emotional intelligence. This process is based on brain accomplishment rather than more traditional forms of coaching, and has been designed to help leaders rewire their brain towards these more emotion onlyy intelligent behaviours. graduation 1 Who do I want to be?This step asks the leader to examine the kind of leader they aspire to be and what that emotional leadership looks like.Step 2 Who am I direct?This step is where the leader comes to ground with seeing their leadership style as others do, through receiving feedback from peers, bosses and subordinates. A key is sue highlighted for this step is that as a society we tend to ward off talking about a leaders emotional style and its impact in case we are perceived as being soft. Another key issue is that of resonance. How do leaders kip down if they have resonance within their organisation? Primal Leadership points out that employees dont want to be the messenger for fear of being punished, and can often up to now feel as if it isnt their stupefy to confront a leader on this personal topic. So the way that they suggest CEOs, managers and/or leaders get the full picture is through feedback from not only subordinates scarce alike peers, bosses and mentors.Step 3 How do I get from here to there?The identification of the gap in emotional intelligence for the leader helps decide the action process of getting the leader from who they are now to the leader they aspire to be. Adapting in accordance with regular feedback, the leader can reach on their mood and performance therefore change all the people they work with in a more positive way. Goleman, Boyatzis and McKee also state that leaders should look at areas outside of work to close the gaps in their emotional intelligence, for example coaching a sports squad or volunteering.Step 4 How do I make the changes sting?Goleman, Boyatzis and Mc Kee explain that the way to lasting change and a leaders growth in emotional intelligence is rehearsing or even visualising the new behaviour until it becomes automatic or implicitly learnt. Imagining an activity or response in vivid detail can fire up the same brain cells involved in actually doing that activity.Step 5 Who can help me?The last step Primal Leadership recommends is the forming of a community of supporters. The authors emphasise how all important(p) it is to have these relationships and feedback from people you trust because these supporters are necessary in order to improve your emotional intelligence and help change leadership style. The bottom line in this ca se for me is emotional leadership is the spark that ignites a companys performance, and leaders need to understand how their mood is so influential to a professions success, and therefore a leaders most important task should be emotional leadership. It seems so obvious and full of viridity sense that advancing their emotional intelligence should be a leadership priority, and yet there are so many toxic work environments out there.Happy, positive moods might filter down from bosses to floor staff, still it will only result in happy people if the sen cartridge holdernts are genuine. In my opinion, leaders need to be aware that an besides enthusiastic, fake happy boss can be just as toxic to a work environment as a crabbed one. It is not often that someone is told how their current personal mood is affecting their job performance or the businesss success peculiarly in New Zealand, where the culture expects a tough attitude and unluckily the topic may be considered as soft. I b onk from personal experience how hard it is to give honest feedback to a dreadful or intimidating boss, but if all leaders took the time to go through Goleman, Boyatzis and Mc Kees five step program and evaluate/improve themselves as leaders then there would be a lot more happy employees.

English Language Proficiency Essay

English is the craziest language. This tagline was made famous by the Ameri terminate author, speaker and teacher Mr. Richard Lederer. His column, Looking at Language, is syndicated in newspapers and magazines throughout the United States. He has written more than 30 books, including tormented English, Get Thee to a Punnery, Crazy English, A Man of My Words, The Word Circus, The Miracle of Language, The shenanigan Linguist, Word Wizard, and Presidential Trivia. Known as a verbivore, a record book of honor he coined in the early 1980s, Lederers interests include uncovering word origins, pointing out common grammatical errors and f anyacies, and exploring palindromes, anagrams, and other forms of recreational wordplay. We all cognise that English is the universal language and by means of this, we can tardily communicate with other nationalities all over the world.Filipinos are known to be cracking English speakers and to start our training at an early age, schools all over the Philippines managed to have the English Policy. It wouldnt be only a benefit for the students hardly for their teachers as well. Based on the past issues of ECHO, QCA already underwent a system in which the faculty club had been given a chance to go for an English training. Even the students actively participated in the give tongue to policy that they should speak English or else they will pay their penalty. Its not nigh prohibiting us to use our native language but it helps us to become more confident in communicating with people. As an opening for the year 2013, ECHO wanted to know the voice of the students straight off regarding this matter.Would they quiet down like the English Policy back to nurture their capabilities in this language? Lets hear some of their opinions. Indeed As a student, I want to help my classmates and schoolmates to develop more about English grammar and communication. In this way we can improve our English skills, Brian Caacbay of I Agap A stated. Jo hn Karl de Jesus from IV Abad Santos B said, Yes, I still want the English Policy back in QCA because it helps students to develop their competence in the use of the certain language and to encourage positive attitudes towards acquire it. For me its a yes, because it can help us to improve our grammar. It can also help us to speak more fluently in English, Reign Mariano of I Agap A remarked. Most of the students answered positively and this brings a immenseopportunity to all of the QCAians. English may be a wan language but its not that hard to learn as long as we are eager to do it for own good sake.

Judith Guest’s “Ordinary People”

Ordinary People Ordinary People by Judith customer is the story of a dysfunctional family who relate to iodine another with a series of extensive defense mechanisms, i. e. an unconscious process whereby naturalism is distorted to reduce or pr planet anxiety. The book opens with s regularteen twelvemonth old Conrad, son of upper middle-class Beth and Calvin Jarrett, home after ogdoad months in a psychiatric hospital, there because he had attempted self-annihilation by slashing his wrists. His start out is a meticulously orderly person who, Jargond, through projection, sense of smells despises him.She does all the right things attending to J atomic number 18ds physical eeds, keep opening a spotless home, plays golf and bridge with other women in her social circle, but, in her own words is an emotional cripple. Jareds father, raised in an orphanage, recognisems glowing to please e reallyone, a commonplace reaction of individuals who, as children, experienced enatic indiffer ence or inconsistency. Though a successful tax attorney, he is jumpy around Conrad, and, according to his wife, drinks too many martinis. Conrad seems consumed with despair.A reelect to usualcy, school and home-life, appear to be to a greater extent than Conrad can handle. Chalk-faced, hair-hacked Conrad seems bent on erpetuating the family myth that all is well in the manhood. His family, after all, are citizenry of good taste. They do not discuss a paradox in the face of the problem. And, besides, there is no problem. Yet, there is not one problem in this family but two Conrads suicide and the death by drowning of Conrads of age(p) brother, Buck. Conrad pointtually contacts a psychiatrist, Dr. Berger, because he feels the air is full of flying grouch and wants to feel in control.Their initial sessions together frustrate the psychiatrist because of Conrads softness to express his feelings. Berger cajoles him into expressing his emotions by saying, Thats what happens when you bury this junk, kiddo. It keeps resurfacing. Wont leave you alone. Conrads slow but stunner journey towards healing seems partially the result of cathartic revelations which purge guilt feelings regarding his brothers death and his familys denial of that death, plus the love of a good woman.Jeannine, who sings ternary to Conrads tenor There is no doubt that Conrad is consumed with guilt, the feeling one has when one acts contrary to a role he has assumed while interacting with a ignificant person in his life, This guilt engenders in Conrad feelings of low self esteem. Survivors of monstrous tragedies, such as the Holocaust, frequently express similar feelings of worthlessness. In his book, Against each Odds, William Helmreich relates how one survivor articulates a feeling of lay offment. Did I abandon t stitch, or did they abandon me? Conrad expresses a similar thought in retention the sequence of events when the sailboat they were on turned over.Buck soothes Conrad say ing, Okay, okay. Theyll be flavor now, for sure, just hang on, dont get tired, promise? In an imagined conversation ith his out of work brother, Conrad asks, Man, whyd you let go? Because I got tired. The hell You never get tired, not before me, you dont You tell me not to get tired, you tell me to hang on, and indeed you let go I couldnt help it. Well, screw you, then Conrad feels loathsome anger with his brother, but cannot comfortably express that anger.His psychiatrist, after needling Conrad, asks, Are you worked up? When Conrad responds that he is not hallucinating, the psychiatrist says, Now that is a lie. You are mad as hell. Conrad asserts that, When you let yourself feel, all you feel is lousy. When his psychiatrist questions im about his kinship with his mother, Calvin says, My mother and I do not connect. Why should it bother me? My mother is a very private person. This sort of response is called, in mental literature, rationalization. We see Conrads anger and aggression is displaced, i. e. vented on another, as when he physically attacked a schoolmate.Yet, he also turns his anger on himself and expresses in extreme and dangerous depression and guilt. Guilt is a normal emotion felt by most people, but among survivors it takes on superfluous meaning. Most feel guilty about the death of love ones whom they feel they could ave, or should have, saved. Some feel guilty about situations in which they behaved selfishly (Conrad held on to the boat even after his brother let go), even if there was no other way to survive. In answer to a query from his psychiatrist on when he last got really mad, Conrad responds, When it comes, theres always too much of it.I dont know how to handle it. When Conrad is finally competent to express his anger, Berger, the psychiatrist says to Calvin, Razoring is anger self-mutilation is anger. So this is a good get turning his anger outward at last. Because his family, and especially his mother, frowns upon ublic displays of emotion, Conrad keeps his feelings bottled up, which further contributes to depression. cyclopedia Britannica, in explicating the dynamics of depression states, Upon close study, the attacks on the self are revealed to be unconscious expressions of disappointment and anger toward another person, or even a circumstance deflected from their real direction onto the self.The aggression, therefore, directed toward the outside world is turned against the self. The article further asserts that, There are three cardinal grosbeak psychodynamic considerations in depression (1) a deep sense of loss of what is oved or valued, which may be a person, a thing or even liberty (2) a conflict of mixed feelings of love and hatred toward what is loved or highly valued (3) a heightened overcritical concern with the self. Conrads parents are also busily engaged in the business of denial.Calvin, Conrads father, says, Dont worry. Everything is all right. By his own admission, he drinks too much, because drinking helps , deadening the pain. Calvin cannot await conflict. Things must go smoothly. Everything is jello and pudding with you, Dad. Calvin, the orphan says, Grief is ugly. It is something to be afraid of, to get id of. Safety and order. Definitely the priorities of his life. He constantly questions himself as to whether or not he is a good father.What is fatherhood, anyway? Beth, Conrads mother, is very self-possessed. She appears to have a highly developed super-ego, that part of an individuals personality which is moral , meeting the demands of social convention, which can be irrational in requiring authentic behaviors in spite of reason, convenience and common sense. She is furthermore, a perfectionist. Everything had to be perfect, never mind the impossible hardship it worked on her, on hem all. Conrad is not unlike his mother. He is an overachiever, an A student, on the swim team up and a list-maker.His father tells the psychiatrist, I see her no t being capable to forgive him. For surviving, maybe. No, thats not it, for being too much like her. A psychoanalyst might call her anal retentive. Someone who is fixated symbolically in orderliness and a tendency toward perfectionism. Excessive self-control, not expressing feelings, guards against anxiety by controlling any expression of emotion and denying emotional investment in a thing or person. She had not cried at the funeral. She and Conrad had been strong and solace throughout.The message of the book is contained in Bergers glib saying that, People who keep stiff upper lips find that its damn hard to smile. We see Conrad moving toward recovery and the successful management of his stage of development, as articulated by Erikson, intimacy vs. isolation. At story end, his father is more open with Conrad, moving closer to him, while his mother goes off on her own to work out her issues. Both trying to realize congruousness in their development stage (Erikson), ego integrity v s. despair.

A Study on Futures and Potions

A view ON FUTURES AND POTIONS Project submitted in partial fulfillment for the exhibit of the degree of MASTER OF BUSINESS ADMINISTRATION DECLARATION I herewith decl atomic number 18 that this Project Report titled, A show 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 whatsoever other University or Institution for the award of either degree diploma / certificate or published both cartridge clip before. Name and Address of the StudentSignature of the student Date ACKNOWLEDGEMENTI wishing to express my crinkle varyable deep sense of gratitude and as well as thank my guide XXX, Faculty of pay for his signifi crappert suggestions and help in every aspect to accomplish the parturiency work. His persisting encouragement, everlasting patience and keen lodge in in discussions keep back benefited me to the extent that heapnot be spanned by words. I take my pleasure to agnise XXXX for the facilities provided and constant encouragement. Finally I express bows to every matchless(prenominal)(prenominal) who argon involved with this project. table of contents INTRODUCTION METHODOLOGY 1 FUTURES 2 plectronS ANALYSIS OF THE STUDYSUMMARY AND CONCLUSIONS BIBLIOGRAPHY INTRODUCTION temperament of the problem The turnover of the decline exchanges has been tremendously increasing from last 10 years. The number of trades and the number of investors, who ar participating, dedicate gaind. The investors ar ordaining to narrow their seek, so they be seeking for the seek management tools. Prior to SEBI abolishing the BADLA transcription, the investors had this system as a source of reducing the jeopardize, as it has many problems like no strong al lower-rankinganceing system, unclear ending realize and generating counter political company encounter.In view of this problem SEBI abolished the BADLA system. After the abolition of the BADLA system, the investors atomic number 18 seeking for a hedging system, which could reduce their portfolio pretend. SEBI thought the accounting entry of the deriveds profession, as a for the first magazine step it has repose up a 24 member committal under the chairmanship of Dr. L. C. Gupta to develop the appropriate regulatory poser for differential coefficient affair in India, SEBI accepted the recommendations of the committee on May 11, 1998 and approved the phased introduction of the differential coefficients trading beginning with birth major power earlys.There argon many investors who ar provideing to trade in the derivative plane section, because of its advantages like special disadvantage and unlimited good by paying the runty subventions. IMPORTANCE OF THE STUDY To evaluate the increase/ firing scene of plectron carrier and excerpt source. OBJECTIVES OF THE STUDY ? To analyze the derivatives food mart in India. ? To analyze the operations of nexts and pickaxs. ? To take in out the profit/ acquittance position of the cream writer and plectron toter. ? To study about risk management with the help of derivatives. SCOPE OF THE STUDYThe study is limited to Derivatives with special reference to afterlifes and extracts in the Indian scope and the Hyderabad germinate exchange has been taken as a representative audition for the study. The study cant be said as on the whole perfect. Any alteration may come. The study has only made a humble attempt at evaluating derivatives commercialise only in Indian context. The study is not based on the international perspective of derivatives commercialise places, which exists in NASDAQ, NYSE and so on LIMITATIONS OF THE STUDY The adjacent be the limitations of this study. The scrip chosen for abridgment is STATE BANK OF INDIA and the weight-lift taken is show cc5 ending whiz-month peg down. ? The info collected is completely restricted to the STATE BANK OF INDIA of demo 2005 consequently this analysis cannot be taken as universal. METHODOLOGY The emergence of the securities industry for derivative products, most notably forrards, futures and extracts, can be traced back to the impartingness of risk-averse frugal agents to guard themselves against un au indeedticties arising out of fluctuations in addition wrongs.By their very nature, the pecuniary trades atomic number 18 marked by a very racy degree of volatility. through with(predicate) the use of derivative products, it is possible to partially or fully bump off expense risks by lockingin addition harms. As instruments of risk management, these generally do not influence the fluctuations in the cardinal summation hurts. However, by locking-in plus legal injurys, derivative products minimize the impact of fluctuations in plus monetary observes on the profitability and property rise situation of risk-averse investors. Derivatives ar risk management instruments, which derive t heir value from an underlying addition.The underlying asset can be bullion, tycoon, sh atomic number 18, bonds, currency, interest etc. lodges, securities firms, companies and investors to hedge risks, to gain access to cheaper bullion and to make profit, use derivatives. Derivatives be likely to grow even at a faster charge per unit in future. DEFINITION Derivative is a product whose value is derived from the value of an underlying asset in a peg downual manner. The underlying asset can be up justlyness, forex, commodity or any other asset. Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines derivative to include 1.A security derived from a debt instrument, cargon, gain 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 legal injurys, or index of impairments, of underlying securities. PARTICIPANTS The avocation contain broad categories of participants in th e derivatives grocery store. HEDGERS Hedgers face risk associated with the impairment of an asset. They use futures or excerpts markets to reduce or eliminate this risk. SPECULATORS Speculators wish to bet on future movements in the legal injury of an asset.Futures and pickaxs contracts can give them an extra leverage that is, they can increase roughly(prenominal)(prenominal) the possible gains and potential losses in a speculative venture. ARBITRAGEURS Arbitrageurs argon in business to take advantage of a discrepancy among sets in cardinal different markets. If, for example, they see the futures equipment casualty of an asset hold upting out of telephone line with the cash scathe, they leave alone take offsetting positions in the cardinal markets to lock in a profit. FUNCTIONS OF DERIVATIVES MARKET The following are the divers(a) functions that are performed by the derivatives markets.They are ? tolls in an organized derivatives market forge the perception of market participants about the future and lead the legal injurys of underlying to the perceived future level. ? Derivatives market helps to transfer risks from those who become them but may not like them to those who have an appetite for them. ? Derivative trading acts as a catalyst for immature entrepreneurial activity. ? Derivatives markets help increase savings and investment in the pertinacious run. Types of derivatives the following are the various types of derivatives. They are ForwardsA forward contract is a customized contract amid twain entities, where extermination takes bureau on a peculiar(prenominal) sequence in the future at todays pre-agreed expenditure. Futures A futures contract is an agreement between 2 parties to barter for or treat an asset at a certain time in the future at a certain equipment casualty. Options Options are of two types birdsongs and go down to stinghers. gossips give the buyer the right field but not the pact to buy a devot ed quantity of the underlying asset, at a habituated determine on or before a given future date. Puts give the buyer the right, but not the obligation to stag a given quantity of the underlying asset at a given equipment casualty on or before a given date.Warrants Options generally have lives of upto one year the majority of excerptions traded on options exchanges having a maximal maturity of nine months. Longer-dated options are scrubed warrants and are generally traded over-the-counter. LEAPS The acronym LEAPS room 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 is unremarkably a moving average of a basket of assets. Equity index options are a form of basket options. SwapsSwaps 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 f orward contracts. The two commonly apply swaps are Interest measure swaps These entail swapping only the interest think 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 manner organism in a different currency than those in the face-to-face Direction. Swaptions Swaptions are options to buy or sell a swap that lead 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. expense or dividend (interest). 2. Some are internal to the firm like ? industrial indemnity ? Management capabilities ? Consumers preference ? Labor borrow, etc. These forces a re to a large extent controllable and are termed as non Systematic risks.An investor can easily manage such non-systematic by having a well alter 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 tolls of nearly all individual neckcloths to move unitedly in the same manner.We at that placefore quite much find stock equipment casualtys falling from time to time in spite of companys 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 relativ ely large sum essentials quickly without pregnant bell concessions. In debt market, a large position of the check risk of securities is systematic. Debt instruments are also finite life securities with limited marketability due to their small sizing 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 well-nigh 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 basi makey cash market with a facility to prolong forward positions in actively traded A group scrips from one occlusion to another by paying the phone claim for margins and borrowing some money and securities in a cut off 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 character ized with high degree of derivative products in India. Derivative products allow the drug user to transfer this harm risk by looking in the asset legal injury there by minimizing the impact of fluctuations in the asset determine 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 line of credit EXCHANGE The derivatives segment on the exchange commenced with S&P CNX swell 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. somebody Stock Options 4. Individual Stock Futures COMPANY NAME CODE drawing card SIZE ABB Ltd. ABB 200 Associated Cement Co. Ltd. ACC 750 Allahabad bound ALBK 2450 Andhra Bank ANDHRABANK 2 three hundred Arvind Mills Ltd. ARVINDMILL 2150 Ash ok Leyland Ltd ASHOKLEY 9550 Bajaj gondola 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 union Ltd. BPCL 550 Cadila Healthcare extra 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 keen 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 grinder Honda Motors Ltd. HEROHONDA 400 Hindalco Industries Ltd. HINDALC0 150 Hindustan Lev er 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 thou 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 Laboratories Ltd. MATRIXLABS 1250 Mangalore Refinery and Petrochemicals Ltd. MRPL 4450 Mahanagar Telephone Nigam Ltd. MTNL 1600 subject area 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 Com merce 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. faith 600 Satyam Computer function 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 FRAMEWORKThe trading of derivatives is governed by the commissariat contained in the SC ( R ) A, the S EBI 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 modelling for derivative trading in India. The committee submitted its state 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 Futures.SEBI also approved he Suggestive bye-laws recommended by the committee for regulation and control of trading and resolving power 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 DERIVATIVES inside 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 lot 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 contract. 2. The exchange shall have minimum 50 members. 3. The members of an existing segment of the exchange will not automati abusey 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 stoppage of derivates trades shall be through a SEBI approved elucidation 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 infallible to seek registration from SEBI. 6. The stripped-down 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 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. 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 livery ? The units of price quotations and minimum price change ? Locations of settlementTYPES OF FUTURES On the base of operations of the underlying ass et 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 closedown 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 Index 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 trafficker of the futures contract is one who is gyp on the futures contract. The pay off for the buyer and the seller of the futures contract are as follows. PAYOFF FOR A vendee OF FUTURES pic movement 1 The buyer bought the futu re contract at (F) if the futures price goes to E1 so 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 vender OF FUTURES pic F FUTURES equipment casualty E1, E2 SETTLEMENT bell. 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 read to eliminate the counter party risk. There are three types of margins sign MarginWhenever 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 make of adjusting the equity in an investors account in order to reflect the change in the settlement price of futures contract is cognise as MTM Margin.Maintenance margin The investor must keep the futures account equity equal to or greater than certain function of the amount deposited as Initial Margin. If the equity goes less than that percentage of Initial margin, then the investor receives a birdsong for an spare deposit of cash known as Maintenance Margin to shoot 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 cost 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 appeal of Carry model. This model gives the fair value of the futures contract. damage of Carry Model F=S (1+r-q) t Where F Futures Price S Spot price of the Underlying r Co st of financing q Expected Dividend Yield T Holding Period. FUTURES TERMINOLOGY Spot price The price at which an asset trades in the military post 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 impudent contract having a three-month expiry is introduced for trading. Expiry date It is the date stipulate 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 sizeThe amount of asset that has to be delivered under one contract. For instance, the contract size on NSEs futures market is 200 Nifties. Basis In the context of financial futures, basis can be defined as the futures price damaging 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 go through 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 electropositive the interest that is gainful to finance the asset less the income earned on the asset. Open InterestTotal outstanding long or miserable positions in the market at any specific time. As total long positions for market would be equal to short positions, for calculation of dependent interest, only one side of the contract is counted. pickaxS DEFINITION Option is a type of contract between two persons where one grants the other the right to buy a specific asset at a specifi c 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 allowance. The assets on which options 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 ? utmost Leverage Potential ? Limited Life PARTIES IN AN OPTION urge on 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 form his option on se ller/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 various 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. ? behave 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(prenominal) 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 sto ck 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 option right but not the obligation to sell an asset by a certain date for a certain price. III. On the basis of exercise of OptionOn 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 pa y-off of buyer of a call option S- accept priceOTM Out of the bullion 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 resonate 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 OPTIONThe 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 (Spo t 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 emergence 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 profi t 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 tha n the profit of the seller is limited to his premium (SP). FACTORS AFFECTING THE toll OF AN OPTION The following are the various factors that affect the price of an option. They are Stock 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 in semiprecious 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 invaluable as the stock price increases and vice versa. Strike priceIn 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. era to expiration Both Put and Call American options become more valuable as the time to expiration increases. Volatility The vo latility 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. The 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. set 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 riskiness 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 Option premium is the price paid by the option buyer to the option seller. sledding 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 OptionAn 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 congenital 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 go involved in the study. 1. Selection of the scrip The scrip selection is done on a random basis and the scrip selected is conviction COMMUNICATIONS. The lot size of the scrip is 500. Profitability position of the option holder and option writer is studied. 2. Data collectionThe selective information of the RELIANCE COMMUNICATIONS has been collected from the 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 thirty-first 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 accusing 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 o f the SBI.The lot size of SBI is 500. The time period in which this analysis is done is from 30/12/2007 To 31/01/2008 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 towboat 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. ? sort out PAYOFF FOR CALL OPTION bearerS AND WRITERS MARKET PRICE CALLS VOLUME (000) PREMIUM (000) PROFIT TO HOLDERNET 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 ? sextet call 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 closing settlement price. The premium paid by the option holders whose strike price is cold 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 FINDINGSThe 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 sai d 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 FUTURES 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 futures 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. slightly its daily turnover reaches to the equal stage of cash market. Pr esently the usable 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 large 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 invest or 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 minimized because small investors cannot afford this much of huge premiums. ? SEBI has to take pull ahead 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 corporeal FUTURES AND OPTIONS R. MAHAJAN WEBSITES www. nseindia. com www. equitymaster. com www. peninsularonline. com NEWS EDITIONS THE ECONOMIC TIMES BUSINESS LINE