Silk Production and Trade in Medieval Times

Silk Production and Trade in Medieval Times Silk was the most luxurious fabric available to medieval Europeans, and it was so costly that only the upper classes- and the Church- could attain it. While its beauty made it a highly-prized status symbol, silk has practical aspects that made it much sought-after (then and now): its lightweight yet strong, resists soil, has excellent dyeing properties and is cool and comfortable in warmer weather. The Lucrative Secret of Silk For millennia, the secret of how silk was made was jealously guarded by the Chinese. Silk was an important part of Chinas economy; entire villages would engage in the production of silk, or sericulture, and they could live off the profits of their labors for much of the year. Some of the luxurious fabric they produced would find its way along the Silk Road to Europe, where only the wealthiest could afford it. Eventually, the secret of silk leaked out of China. By the second century C.E., silk was being produced in India, and a few centuries later, in Japan. By the fifth century, silk production had found its way to the middle east. Still, it remained a mystery in the west, where artisans learned to dye it and weave it, but still didnt know how to make it. By the sixth century, the demand for silk was so strong in the Byzantine Empire that the emperor, Justinian, decided they should be privy to the secret, as well. According to Procopius, Justinian questioned a pair of monks from India who claimed to know the secret of sericulture. They promised the emperor they could acquire silk for him without having to procure it from the Persians, with whom the Byzantines were at war. When pressed, they, at last, shared the secret of how silk was made: worms spun it.1 Moreover, these worms fed primarily on the leaves of the mulberry tree. The worms themselves could not be transported away from India . . . but their eggs could be. As unlikely as the monks explanation may have sounded, Justinian was willing to take a chance. He sponsored them on a return trip to India with the objective of bringing back silkworm eggs. This they did by hiding the eggs in the hollow centers of their bamboo canes. The silkworms born from these eggs were the progenitors of all the silkworms used to produce silk in the west for the next 1,300 years. Medieval European Silk Producers Thanks to Justinians wily monk friends, Byzantines were the first to establish a silk production industry in the medieval west, and they maintained a monopoly on it for several hundred years. They set up silk factories, which were known as gynaecea because the workers were all women. Like serfs, silk workers were bound to these factories by law and could not leave to work or live elsewhere without the permission of the owners. Western Europeans imported silks from Byzantium, but they continued to import them from India and the Far East, as well. Wherever it came from, the fabric was so costly that its use was reserved for the church ceremony and cathedral decorations. The Byzantine monopoly was broken when Muslims, who had conquered Persia and acquired the secret of silk, brought the knowledge to Sicily and Spain; from there, it spread to Italy. In these European regions, workshops were established by local rulers, who retained control over the lucrative industry. Like the gynaecea, they employed mainly women who were bound to the workshops. By the 13th century, European silk was competing successfully with Byzantine products. For most of the Middle Ages, silk production spread no further in Europe, until a few factories were set up in France in the 15th century. Note 1The silkworm isnt really a worm but the pupa of the Bombyx mori moth. Sources Netherton, Robin, and Gale R. Owen-Crocker, Medieval Clothing and Textiles. Boydell Press, 2007, 221 pp. Compare prices Jenkins, D.T., editor, The Cambridge History of Western Textiles , vols. I and II. Cambridge University Press, 2003, 1191 pp. Compare prices Piponnier, Francoise, and Perrine Mane, Dress in the Middle Ages. Yale University Press, 1997, 167 pp. Compare Prices Burns, E. Jane, Sea of silk: a textile geography of womens work in medieval French literature. University of Pennsylvania Press. 2009, 272 pp. Compare Prices Amt, Emilie, Womens lives in medieval Europe: a sourcebook. Routledge, 1992, 360 pp. Compare prices Wigelsworth, Jeffrey R., Science and technology in medieval European life. Greenwood Press, 2006, 200 pp. Compare prices

A Critical Evaluation of the Quality of Employee Relations Essay

A Critical Evaluation of the Quality of Employee Relations - Essay Example Using this theory it is possible to provide an account of the many different parts and link them together using the functions each play in keeping the whole system running (Nicholls 2003, pg. 18-19). This report critically asses the quality of employee relations that exist at Coca Cola Company. It will look at the internal arrangement of the company and specifically its Human Resource Management structure and how the company uses levels of relations to improve its productivity and reputation (Budd, 2012). The report will also look at the ethic and culture of the company and the impact of employer-employee relationship in Human Resource Management in the company. Coca Cola was invented on May 8th 1886 in Atlanta USA by Dr John Stitch Pemberton. The formula was patented by Asa Candler when he bought the formula from the inventor. In 1893, it was registered as a trade mark and shortly thereafter could be found in practically all the states in America (Hyman, 1975, pg. 25). Due to Asa Ca ndler’s aggressive marketing techniques by the late 1890s it was one of the most popular drinks in America. At present Coca Cola is present in more than 200 countries and has over 500 brands and 300 beverages. It has an associate employment population of over 92,000 worldwide and net operating revenue of over $31.9 billion (December 31st 2008) Coca Cola is the most recognizable brand in the world today. The use of systems theory in analyzing employee relations has its shortcomings. The concept implies that the subject matter is capable of description while suggesting that the realm of employment is a definite system that exhibits common values that hold it together, hence giving it the appearance of a system (Hyman, 1989, pg 25). It is also argued that to define employee relations strictly in terms of rules and regulations is a very narrow and restrictive. Nevertheless systems theory gives an important framework for describing the context of employee relations. It has created terms that have been accepted in the subject of employee relations. This approach was adopted in United Kingdom by a number of scholars. Clegg (1979) took this concept, contextualized it in the British understanding and came out with a definition. He defines it as the study of rules governing employment and the way rules are formulated, changed and administered (Clegg 1979, pg.1). Therefore; employee relations are the methods of formulating rules and regulations which governs the work place. Employee relationship is the process of managing diversity and change which necessitates maintaining employer-employer relationships that contribute to adequate productivity and motivation. The systems theory avers that there are three main broad areas that constitute employee relations. These are (i) inputs, (ii) processes and (iii) outputs. The inputs have three elements in it. The first being the actors. The actors are represented by the trade unions, management, employee associations and th e public bodies mandated to regulate employment (Clegg 1979, pg. 1). The second factor is the context or environment, which is usually complex and dynamic. The workplace is not only affected by the policies and procedures in place there, the internal environment, but also by economic, political and social developments beyond it, the external environment. The last factor is ideology. Industrial relations create a common body of ideas and beliefs regarding the role of the players which in turn helps the system to operate. The outputs are the rules and regulations which are in two parts, substantive and procedural. Substantive part deals with matters like pay, overtime, holidays and the way in which a job should be accomplished.

The more advances that are made in Medicine, the more things stay the Scholarship Essay - 1

The more advances that are made in Medicine, the more things stay the same. Discuss - Scholarship Essay Example This paper argues out this concept by giving the several impacts of the advancement of medicine on patients in the society. This will create the basis of the argument to verify its credibility. The paper will analyze both the positive and negative effects of advancement of medicine in the society today by looking at various situational cases where advanced medical services are used. The results of the use of advanced medical services lay the foundation of this argument considering its positivity and negativities. Because of the availability of medical equipment for research and treatment, researchers in the field of medicine have come up with different kinds of medicines which cure various diseases (Alyson, 2014). They have also been able to study complicated diseases in the recent years and have found the cure for some chronic diseases. Biotechnology is a great advancement in the field of medicine making it easy for people to live with chronic diseases. It prolongs the life of people suffering from serious and chronic illnesses by controlling of diseases or the virus in the body of patients. An example is dealing with patients suffering from cancer. Biotechnology has given hope to such patients by controlling the disease through chemotherapy hence prolonging their life span. The use of plastic body parts has also helped individuals to live a normal life (Catalunya, 2014). An example is patients suffering from breast cancer and has lost a part of her breast. Plastic breasts can be used to al low her live a normal life like any other woman. The advancement of medicine in the world today is due to the evolvement of technology as it improves to make solving problems today an easy task. There are various advancements in medicine today and a majority of them are influenced by the availability of advanced technology in the health sector. Medical advancements are aimed at

Corporate Culture is Core Competitiveness Essay Example for Free

Corporate Culture is Core Competitiveness Essay Placed in rough sea, survival of the fittest, many companies are still competitive through the development of hundreds of years; the root of the reason is that they have their own corporate culture. Well, what’s the corporate culture? Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organizations goals, strategies, structure, and approaches to labor. Not only does the corporate culture have its own characteristics, but most importantly that corporate culture is their core value which is the first core competitiveness. The corporate culture itself is kind of wisdom, it can’t be copied; it has deep historical accumulation and precipitation. Such as that â€Å"Respect and best service† is one of IBM’s core values that are why we call IBM as â€Å"Big Blue†. If we mention blue and everybody knows it is IBM, which culture influences those people’s thinking and doing, even wherever they go, they feel proud of that they are or they were in the Big Blue. The corporate culture just likes blood in the body, can’t be seen but can feel it and envision it. Regardless of the size of enterprises, large or small, they have their own management mode. However, experience management or system management, even other kind of management, all of them will definitely rise to the cultural management in the end. Corporate culture is the source of core competitiveness, which can create the enormous amount of cohesion, drive and creativity. The business leaders are also the best founders of corporate culture and implementers. They setup the suitable culture which can give employees a great sense of satisfaction in the spirit level and cause a strong sense of belonging. With similar thinking and shared goals, creativity can flourish and create a strong and powerful source of competitiveness. Economic globalization is a trend; the competition is no longer just in products but in who has a stronger corporate culture, which can cover in the market, all aspects of the talents and customers. Once the clients accept your culture and would like to do the business with you, and then we can say that corporate culture plays the role and changed to be a strong competitiveness. So I think corporate culture will be the necessity of the enterprise management in the future.

Karen Hesse An American Author :: Essays Papers

Karen Hesse An American Author A Look at the Life of Karen Hesse As children, we all had magnificent dreams and aspirations. Whether they were to walk on the moon or to discover a new plant species, dreams were the things that kept us going; kept us striving towards obtaining what we wanted. For Karen Hesse, many dreams came and went throughout her life, but the idea of becoming a published author was always instilled in her mind. Karen Hesse was born August 29, 1952 and was raised in Baltimore, Maryland. Not much is mentioned about her childhood or her family, but one source states that Hesse basically enjoyed participating in normal childhood activities such as catching lightning bugs, taking part in talent shows, and swimming (Wilson 1). Meanwhile, Karen always had a passion for writing. She’d sit in her small closet and write poetry for hours. In regard to her family, Hesse stated they were always supportive of her passion and encouraged creativity (Wilson 2). This is one source of her inspiration. Mainly, however, it was Karen’s fifth grade teacher, Mrs. Datnoff, who truly encouraged her to follow her dream and really believed in her (Scholastic 1). Hesse attended college at Towson State and later transferred to the University of Maryland, from which she graduated in 1975. She majored in theater, anthropology, psychology, and even English (Wilson 1,2). She earned a BA in English with double minors in psychology and anthropology. During college, Hesse found herself to be quite â€Å"good with words† and began writing a lot more (Scholastic 1). After graduating, Hesse took a trip across country with her future husband on which she visited many national parks and became very in touch with nature and learned how much she loved life and loved meeting people (Wilson 1). Before becoming an author, Karen had many, many jobs. Many of these jobs helped to enrich her chances of making it as a successful author. The rest, however, helped Karen to find herself and earn wages while being an aspiring writer. A few jobs which helped to enrich her future career were as a proofreader, typesetter, librarian, and a book reviewer. Her other jobs were as an advertising secretary, actress, waitress, nanny, personnel officer, agricultural laborer, mental-health care provider, substitute teacher, and a member of the school board. As a child, Hesse hoped to become an archeologist, an ambassador, or an actress (Scholastic 1,2 ; Conant 1).

Case Study Evaluation and Analysis using Leadership Theories and Concepts

Introduction Leadership is one of the most important factors that determine the overall performance of an organisation (Lussier & Achua, 2012). As argued by Hogg,Van Knippenberg and Rast (2012), how leaders in organisation’s delegated duties, make decisions and interact with other members either positively or negatively affects employee output and thus influences the attainment of the overall organisational objective. This paper presents an analysis of leadership at EEF, a membership organisation that is a counterpoint to the Trade Union movement and was founded with the aim of supporting employers in the United Kingdom. Among the key concepts addressed in this analysis are the key leadership theories can be applicable to this case and challenges encountered in the leadership process. The role of Leadership at EEF As an organisation that represents the interests of many employers around the United Kingdom, the leadership at EEF is obligated to ensure that it establishes the needs of its members and effectively addresses them. The role played by EEF’s leadership is exhibited by the fact that it addresses its members’ needs through providing them with advice, guidance and support that will enable them to efficiently and effectively manage their businesses. EEF’s leadership is also committed towards ensuring that the company is flexible enough to maintain its relevance in its service delivery by implementing the required changes. Some of the changes included the transformation of the company’s legal status from a federation to a limited company by guarantee in 2009 to ensure that that its status as a non-profit was protected. The other change that was implemented by the company’s leadership in the same year was converting it into a single integrated national ent ity from its original regionalised structure. This integration resulted into the appointment of another CEO who was expected to lead the company under its new banner of â€Å"One EEF†. All these changes were made by the company with the aim of addressing the ?7 million loss experience in 2009, which was the first it had ever experienced since it was founded. A regional team leader of the company’s sales team, Tom Jones, was also appointed to oversee the now consolidated team. These strategies that were implemented by the company’s top leadership to ensure that the company remains on track highlights one of the key roles of leadership in an organisation, which is decision making. Whereas the ?7 million loss that was suffered in 2009 might have highlighted flaws in the leadership of EEF that year, the immediate changes that were made show the commitment of the company’s leadership towards its good performance. Analysis of Tom Jones’ Leadership using Leadership TheoriesThe Trait Theory of LeadershipFrom the case, Jones was selected out of the other applicants who were originally in charge of the regional sales functions. Out of these was an applicant who had expected to be selected as the team leader because of his long-term experience with the company. The trait theory of leadership can be used in explaining this selection. According to the trait leadership theory, good leaders possess a variety of characteristics and personal traits that enable them execute their leadership responsibilities well. These include integrity, assertiveness, empathy, honesty, openness, likeability and decision making skills (Colbert et al., 2012). The applicant mentioned in the case who had served for long as the leader of a regional sales team could have possessed some of these traits, but not as many as Jones exhibited. Some of the traits exhibited by Jones – as highlighted in the case – included openness, honesty and good decision making skills.The Behavioural TheoryThis theory focuses the behaviour of leaders as they guide their followers towards attaining the overall organisational objective, and classifies leaders as democratic, autocratic or Laissez-faire (DeRue et al., 2011). Democratic leaders are characterised by the fact that they involve other team members in the decision making process. The suggestions that receive the most support from team members are adopted as final decisions. Whilst this approach is lauded for ensuring effective teamwork, it becomes challenging to reach a final decision when the suggestions provided are many and differ widely (Lussier & Achua, 2012). Autocratic leadership involves making of decisions without any prior consultation or involvement of team members. This approach has been regarded as being ineffective for teamwork dynamics and team agreement. It is however considered ideal in situations where decisions need to be urgentl y made (Bhatti et al., 2012). The Laissez-faire approach to leadership is carried out by allowing other team members to make most of the decisions with minimal interference from the leader. This approach is mostly applicable when team members are highly skilled and capable of independently making good decisions. However, leaders who prefer this approach might at times be mistaken for being lazy (Lussier & Achua, 2012). Jones’ leadership approach was characterised by openness, which contributed towards his adoption of a collaborative team building approach that involved sharing of information and ideas, which matches with the democratic approach. Jones also valued the experiences and ideas of other team members. By applying this leadership approach, the team was able to identify the major issues, which were later prioritised according to their urgency. Transactional vs. Transformational LeadershipLeadership can also be classified as either transactional or transformational. Tr ansactional leadership is based on the assumption that individuals are motivated by punishment and reward. It also assumes that the best way in which social systems can work is through the establishment of a clear chain of command (Carter et al., 2013). According to Bono, Hooper and Yoon (2012), transactional leaders work by clearly setting structures or rules by which their followers are required to abide, as well as rewards to be expected when they are adhered to. Whilst they are not usually mentioned, formal discipline systems and punishments are also well understood by their followers (Carter et al., 2013). This is as opposed to transformational leadership where leaders develop constructive visions for the organisation, sell them to their followers, find the way forward on how to implement the vision and lead the implementation of the vision (Wright et al., 2012). The diagram below depicts the differences between Transactional and transformational leadership. Table 1: Transactional vs. Transformational leadership (Adopted from Lussier and Achua (2012) Jones’ involvement of the team at EEF, formulation of necessary changes to transform the company and offering both personal and professional support to his team to enable them achieve these changes matches with the transformation approach to leadership. Among the changes that were identified as necessary for EEF were the establishment of new geographical sales areas and their respective sales representatives, implementing the necessary forecasting and reporting processes, and ensuring that the existing CRM systems are upgraded so as to attain consistency in the measurement key performance indicators. Jones embarked on achieving these changes by leading the change in the organisational culture by encouraging team members to be more ‘corporate minded’ and committed to problem solving. He also embarked on building corporation and trust within the team he was leading. These characteristics of Jones’ leadership further verify his transformational leadership appr oach. Leadership challenges from the Case There are several challenges that can be identified from the provided case on EEF. One of these was the loss that was incurred in the 2009 financial year, which triggered the transformation of EEF’s overall structure. The changes that were implemented further triggered challenges that are typical to any change process in organisations. The first was ensuring that he addressed the feelings of the applicants who lost on their applications as team leaders and creating a formidable team. Given that they all held same regional position before, it can be concluded that their capabilities were almost the same. Therefore, the most effective approach that could be used by Jones in addressing this was involving them in decision making through a highly democratic leadership style (DeRue et al., 2011). By knowing that their opinions are valued by their leader, they will be motivated and committed towards attaining the desired organisational objective (Lussier & Achua, 2012). The other challenge was in regards to the transformation of the organisation’s structure from being regionally based to a unit national structure. In order to attain this overall change, there are several change management models that could be used. One of these is the 8 step model of organisational change, which was proposed by Kotter (1996). It divides the whole change process into eight stages that are more manageable and all contribute towards the attainment of the desired outcome of change. These stages are explained in table 2 below. Whereas this approach to organisational change has been supported by a wide number of researchers, it has also received criticism. For instance, O’Keefe (2013) pointed out that the model assumes that change is a linear process and does not account for challenges or changes that might be encountered in the change process. Table 2: Kotter’s 8-stage model of organisational change (Kotter, 1996) Conclusion In conclusion, this paper has presented an in-depth analysis of leadership at EEF in regard to the changes implemented with the aim of recovering from its poor performance that was registered in 2009. In the analysis, leadership concepts and theories have been referred to and their applicability to the case has been explained. Among these are the trait and behavioural theories of leadership, transformational and transactional leadership models and Kotter’s 8 stage model of leadership. Even with the few mentioned challenges that were highlighted in the case, it has been shown that Tom Jones’ leadership approach was ideal for the EEF as it set out to implement the necessary changes in its functional and organisational structures. References Bhatti, N. et al. (2012) The impact of autocratic and democratic leadership style on job satisfaction. International Business Research, 5(2), pp.192-207. Bono, J.E., Hooper, A.C. & Yoon, D.J. (2012) Impact of rater personality on transformational and transactional leadership ratings. The Leadership Quarterly, 23(1), pp.132-45. Carter, M.Z., Armenakis, A.A., Feild, H.S. & Mossholder, K.W. (2013) Transformational leadership, relationship quality, and employee performance during continuous incremental organisational change. Journal of Organisational Behavior, 34(7), pp.942-58. Colbert, A.E., Judge, T.A., Choi, D. & Wang, G. (2012) Assessing the trait theory of leadership using self and observer ratings of personality: The mediating role of contributions to group success. The Leadership Quarterly, 23(4), pp.670-85. DeRue, D.S., Nahrgang, J.D., Wellman, N.E.D. & Humphrey, S.E. (2011) Trait and behavioral theories of leadership: An integration and meta?analytic test of their relative validity. Personnel Psychology, 64(1), pp.7-52. Hogg, M.A., Van Knippenberg, D. & Rast, D.E. (2012) Intergroup leadership in organisations: Leading across group and organisational boundaries. Academy of Management Review, 37(2), pp.232-55. Kotter, J.P. (1996) Leading change. Cambridge, MA: Harvard Business School Press. Lussier, R. & Achua, C. (2012) Leadership: Theory, application, & skill development. Mason: Cengage Learning. O’Keefe, K. (2013) Where Kotter’s 8 Steps Gets it Wrong. [Online] Available at: http://www.executiveboard.com/communications-blog/where-kotters-8-steps-gets-it-wrong[Accessed 18 December 2014]. Wright, B.E., Moynihan, D.P. & Pandey, S.K. (2012) Pulling the Levers: Transformational Leadership, Public Service, Motivation, and Mission Valence. Public Administration Review, 72(2), p.206–215.

Exploring and analyzing the exchange of derivatives - Free Essay Example

Sample details Pages: 10 Words: 3044 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Derivative is a financial asset which derives its value from specified underlying asset. A derivative does not have any physical existence but emerges out of a contract between two parties. It does not have any value of its own but its value, in turn, depends on the value of other physical assets which are called underlying asset. Don’t waste time! Our writers will create an original "Exploring and analyzing the exchange of derivatives" essay for you Create order These underlying assets may be shares, debentures, tangible commodities, currencies, or short term or long term financial securities. Securities Contracts (regulation) Act, 1956 defines a derivative as a security derived from a debt instrument, share loan and contract which derive their value from price or index of prices of underlying securities. The value of derivative may depend upon any of these underlying assets. The parties to the contract of derivatives are the parties other than the issuer or dealer in underlying asset. Some of the basic features of derivatives are: As the derivatives are not the physical assets, the transactions in the derivative are settled by the offsetting/squaring transaction in the same derivative. The differences in the value of the derivative is cash settled There is no limit on number of units transacted in the derivative market because there is no physical asset to be transacted. The derivative markets are usually the screen based computerized exchanges as against the trading markets for physical asset. Derivatives are only secondary market securities and cannot help in raising funds to a firm. In fact derivatives arise only when the shares and debentures are already issued by the companies. The derivative market is quite liquid and transactions can be effected easily. The derivatives provide a hedging of price risk of financial transactions over a certain period. It is a contract to be settled in future, by cash payment of difference in price. A derivative price must be distinguished from the underlying assets though the value of derivative and the underlying assets are related Types of Derivatives Commodity Derivatives and Financial derivatives: Derivatives contracts may be entered into for different type of commodities such as sugar, jute, pepper, jiggery, castor seeds etc. on the other hand the derivatives in currencies, gilt edged securities, shares, share indices etc are known as Financial derivatives. These are transacted all over the world. In India Stock Index futures, Stock Index Option, Stock Options, and Stock futures can be traded at BSE and NSE. Basic Derivative and Complex Derivative: The basic derivative are derivatives on underlying assets. Futures and options are two basic derivatives. However there are certain other derivatives such as swaps which may be classified as complex derivatives. Participants in Derivative Market In the derivative market, different types of parties participate. The derivatives are the hedging instrument participants with the objective also trade in the derivatives. Various participants may be classified into: Hedgers: derivatives have come upto the needs of the hedgers. Derivatives help both the parties to hedge. In case of commodity future contract farmers want to lock in the price for their produce and the merchants want to lock in the price they want to pay for the produce. Futures contract enable both the parties to hedge. Hedgers can use option contract also. Option protect the hedgers against the price movements while still allowing them to benefit from favourable price movements. So the hedgers have risk exposure which they offset by a derivative. Hedgers seek to protect themselves against price changes in an asset in which they have an interest. Speculators: Speculators are participants who are ready to take a risk for some return. They take position in the market either by betting that price will go up or by betting that the prices will go down. A participant will can speculate in futures or options. Speculators potential gain or loss is very large in case of futures, however loss may be limited and gain will be unlimited in case of options. Speculators are major player in derivative market. Arbitrageurs: Arbitrageurs are another group of participant in the derivative market. The arbitrage refers to locking in to risk less profit by simultaneously entering into two transactions in two different markets. The profit opportunities appear because of differences in price of the same asset in different markets. Types of Financial derivatives Forwards: Transaction agreements in assets can be broadly classified as Steady or Ready delivery contracts: where the asset is to be physically delivered immediately or within few days and payment is made in cash Future Delivery Contract: where the physical delivery of the asset is slated for the future date and the payment to be made as agreed. The futures delivery can be further classified as: Non transferable future delivery contract, where the contract must be performed by the parties as per the terms and condition mentioned. Transferable future delivery contract, when the parties to the contract can transfer the rights and obligation under the contract to the third party. The first one is known as forward contract and the second one is known as future contract. A Forward contract is agreement between two parties to buy or sell an asset at a future date at an agreed price today. Futures: A future is a contract to buy or sell the stated quantity of a commodity or a financial claim at a specified price at a future specified date. The parties to the future have to buy or sell the asset regardless of what happens to its value during the intervening period or what shall be the price on the date for which the contract is finalized. The futures are transferrable future delivery contract. Both the parties to the future have the right to transfer the contract by entering into an offsetting futures contract. It is not transferred until the settlement date then they have obligation to fulfill the terms and condition of the contract. Futures are traded on the exchanges and the terms of the futures contract are standardized by the exchange with reference to quantity, date, unit of price quotation, minimum change in price etc. futures can be of commodities such as agricultural products, oil gas, gold, silver etc. Or of financial claims such as shares, debentures, treasury bonds, share index, foreign exchange etc. Option: these are contracts which provide the holder the right to sell or buy a specified quantity of an underlying asset at a fixed price on or before the expiration of the option date. Options provide a right and not the obligation to buy or sell. The holder of the option can exercise the option at his discretion or may allow the option to lapse. As the option provide the right to buy or sell, these are the two types of option: The Call Option: A call option provides to the holder a right to buy a specified assets at a specified price on or before a specified date. The Put Option: A put option provides to the holder a right to sell specified assets at specified price on or before a specified date Swap: A swap is a contract in which two parties agree to exchange their respective cash flows. These are private arrangements between the parties to exchange cash flows accordingly to some pre arranged terms. The parties to the swap contract are known as counter parties. In swap one party agrees to exchange his set of pre-determined cash flows with the pre-determined cash flows of the other party. The swaps are of two types: Currency Swaps: A currency swap is transaction between two parties in which one promises to make a series of payment to other party at a specific date in exchange for a payment from the other party in different currencies. So in swaps the cash flows of different currencies are swapped Interest Rate Swap: these are the agreement between two parties in which each party makes a series of interest payment to the other party at pre-determined dates. At least one the interest rate is variable, i.e. floating rate in the sense that at which the interest payments will be made at the later date is known. The most common interest rate swap is known as Plain Vanilla swap in which one rate is fixed and other rate is floating History of Derivatives The history of derivatives is quite colorful and surprisingly a lot longer than most people think. Forward delivery contracts, stating what is to be delivered for a fixed price at a specified place on a specified date, existed in ancient Greece and Rome. Roman emperors entered forward contracts to provide the masses with their supply of Egyptian grain. These contracts were also undertaken between farmers and merchants to eliminate risk arising out of uncertain future prices of grains. Thus, forward contracts have existed for centuries for hedging price risk. The first organized commodity exchange came into existence in the early 1700s in Japan. The first formal commodities exchange, the Chicago Board of Trade (CBOT), was formed in 1848 in the US to deal with the problem of credit risk and to provide centralized location to negotiate forward contracts. From forward trading in commodities emerged the commodity futures. The first type of futures contract was called to arrive at. Trading in futures began on the CBOT in the 1860s. In 1865, CBOT listed the first exchange traded derivatives contract, known as the futures contracts. Futures trading grew out of the need for hedging the price risk involved in many commercial operations. The Chicago Mercantile Exchange (CME), a spin-off of CBOT, was formed in 1919, though it did exist before in 1874 under the names of Chicago Produce Exchange (CPE) and Chicago Egg and Butter Board (CEBB). The first financial futures to emerge were the currency in 1972 in the US. The first foreign currency futures were traded on May 16, 1972, on International Monetary Market (IMM), a division of CME. The currency futures traded on the IMM are the British Pound, the Canadian Dollar, the Japanese Yen, the Swiss Franc, the German Mark, the Australian Dollar, and the Euro dollar. Currency futures were followed soon by interest rate futures. Interest rate futures contracts were traded for the first time on the CBOT on October 20, 1975. Stock index futures and options emerged in 1982. The first stock index futures contracts were traded on Kansas City Board of Trade on February 24, 1982. T he first of the several networks, which offered a trading link between two exchanges, was formed between the Singapore International Monetary Exchange (SIMEX) and the CME on September 7, 1984. Options are as old as futures. Their history also dates back to ancient Greece and Rome. Options are very popular with speculators in the tulip craze of seventeenth century Holland. Tulips, the brightly coloured flowers, were a symbol of affluence; owing to a high demand, tulip bulb prices shot up. Dutch growers and dealers traded in tulip bulb options. There was so much speculation that people even mortgaged their homes and businesses. These speculators were wiped out when the tulip craze collapsed in 1637 as there was no mechanism to guarantee the performance of the option terms. The first call and put options were invented by an American financier, Russell Sage, in 1872. These options were traded over the counter. Agricultural commodities options were traded in the nineteenth century in England and the US. Options on shares were available in the US on the over the counter (OTC) market only until 1973 without much knowledge of valuation. A group of firms known as Put and Call brokers and Dealers Association was set up in early 1900s to provide a mechanism for bringing buyers and sellers together. On April 26, 1973, the Chicago Board options Exchange (CBOE) was set up at CBOT for the purpose of trading stock options. It was in 1973 again that black, Merton, and Scholes invented the famous Black-Scholes Option Formula. This model helped in assessing the fair price of an option which led to an increased interest in trading of options. With the options markets becoming increasingly popular, the American Stock Exchange (AMEX) and the Philadelphia Stock Exchange (PHLX) began trading in options in 1975. The market for futures and options grew at a rapid pace in the eighties and nineties. The collapse of the Bretton Woods regime of fixed parties and the introduction of floating rates for currencies in the international financial markets paved the way for development of a number of financial derivatives which served as effective risk management tools to cope with market uncertainties. The CBOT and the CME are two largest financial exchanges in the world on which futures contracts are traded. The CBOT now offers 48 futures and option contracts (with the annual volume at more than 211 million in 2001).The CBOE is the largest exchange for trading stock options. The CBOE trades options on the SP 100 and the SP 500 stock indices. The Philadelphia Stock Exchange is the premier exchange for trading foreign options. The most traded stock indices include SP 500, the Dow Jones Industrial Average, the Nasdaq 100, and the Nikkei 225. The US indices and the Nikkei 225 trade almost round the clock. The N225 is also traded on the Chicago Mercantile Exchange. Derivatives in India (Now) At present Derivatives Trading has been permitted by the SEBI on the derivative segment of the BSE and the FO segment of the NSE. The nature of derivative contracts permitted are: Index Futures contracts introduced in June 2000 Index Option introduced in June 2001 Stock Option introduced in July 2001 Currency Futures and options introduced in 2008 Interest rate futures introduced in August 2009 The minimum contract size for a derivative contract is Rs 2 Lakh. Besides the minimum contract size, there is a stipulation for lot size of a derivative contract. The lot size refers to number of securities underlying in one contract. The lot size of the underlying individual security should be in multiples of 100 and fractions. Commodity Exchanges In India there are 25 recognized future exchanges, of which there are three national level multi commodity exchanges. After a gap of almost three decades, Government of India has allowed forward transactions in commodities through Online Commodity Exchanges, a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities. The three exchanges are: National Commodity Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange of India Limited (MCX) National Multi-Commodity Exchange of India Limited (NMCEIL) All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. National Commodity Derivatives Exchange Limited (NCDEX) National Commodity Derivatives Exchange Limited (NCDEX) located in Mumbai is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956 and had commenced its operations on December 15, 2003.This is the only commodity exchange in the country promoted by national level institutions. It is promoted by ICICI Bank Limited, Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). It is a professionally managed online multi commodity exchange. NCDEX is regulated by Forward Market Commission and is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations. Multi Commodity Exchange of India Limited (MCX) Headquartered in Mumbai Multi Commodity Exchange of India Limited (MCX), is an independent and de-mutulised exchange with a permanent recognition from Government of India. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, Union Bank of India, Corporation Bank, Bank of India and Canara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures markets across the country. MCX started offering trade in November 2003 and has built strategic alliances with Bombay Bullion Association, Bombay Metal Exchange, and Solvent Extractors. Association of India, Pulses Importers Association and Shetkari Sanghatana. National Multi-Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first demutualized, Electronic Multi-Commodity Exchange in India. On 25th July, 2001, it was granted approval by the Government to organise trading in the edible oil complex. It has operationalized from November 26, 2002. Central Warehousing Corporation Ltd., Gujarat State Agricultural Marketing Board and Neptune Overseas Limited are supporting it. It got its recognition in October 2002 Research Methodology Correlation Analysis Correlation analysis is a statistical technique used to measure the magnitude of linear relationship between two variables. Correlation analysis cannot be used in isolation to describe the relationship between variables. It can be used along with regression to determine the relationship between two variables. Thus it can be used as the basis for further analysis. There are two prominent correlation coefficients i.e. Pearson Product Correlation Coefficient and Spearmans Rank Correlation Coefficient. But in this report we have used the Pearsons method to compute the correlation. Pearson Product Correlation Coefficient It measures the strength of the linear relationship between two variables. This is also known as simple correlation coefficient and is denoted by r. The r value ranges from -1 to +1. If the r value is -1 than it indicates that there is the perfect negative relationship between the two variables. If the value is +1 than it indicates the perfect positive relationship between the two variables. If the value is 0 it indicates that there is no relationship between the two variables. It can be calculated as follows https://mathbits.com/mathbits/tisection/statistics2/IntroS7.gif Where r = correlation coefficient for the variables X and Y Regression Analysis Regression analysis is another statistical tool for measuring the association the between the two variables. It is the technique used to predict the nature and closeness of relationship between two or more variables. This method is different from correlation analysis. It helps to evaluate the causal effect of one of the dependent variable based on the information about one or more independent variables. Regression analysis that involves two variables is termed bi-variate linear regression analysis. Regression analysis that involves more than two variables is termed as multiple regression analysis. The bi-variate linear regression involves analyzing the straight line relationship between the two continuous variables. The bi-variate linear regression can be expressed as: Y=  Ãƒâ€šÃ‚ ¡ + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²x Y represents the dependent variable X represents the independent variable  Ãƒâ€šÃ‚ ¡ and ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² are the two constants which are known as regression coefficients ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² is the slope coefficient i.e. ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² is the change in the value of Y with the corresponding change in 1 unit of X.