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PGP Handbook - Institute of Public Enterprise

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COMMODITY TRADING & PRICE RISK<br />

MANAGEMENT<br />

Code: 401IB Credits: 2<br />

Unit I : Global Commodity Trading - Global Commodity<br />

Agreement – Projecting <strong>of</strong> Commodities<br />

(Metals, Minerals and Agro) - Structure<br />

and Performance Issues – Emergent Trade<br />

Issues under WTO - Risk Management -<br />

Emerging Trends E-Commerce in Risk Management<br />

- Hedge & CT Funds - Historical<br />

Perspective <strong>of</strong> hedging - Evolution <strong>of</strong> futures<br />

market (Global and Indian) - Need for price<br />

risk management -Latest Developments in<br />

India in this direction. Pricing on Commodity<br />

Exchanges - Relationship between Physical<br />

and Futures markets – Forward, Futures and<br />

OTC Contacts - Forward Contracts, Futures<br />

Contracts - OTC Contracts - Exchange Floor<br />

Operations - Floor Trading.<br />

Unit II : Price discovery - Market Information - Auction<br />

(Open Outcry) – Price Reporting Clearing<br />

House - Clearing House Operations - Formal<br />

Clearing concepts - Third Party Guarantee -<br />

Process flow - Cash and Futures dynamics.<br />

Basis/Premium & Inverted Markets - Carry<br />

Markets & Inverted Markets Speculators –<br />

Fundamental & Technical Analysis - Position<br />

& Day Traders – Spreads– Bull and Bear<br />

- Hedging Dynamics - Trading Plan - Know<br />

your contracts - Pr<strong>of</strong>it Objectives - Risk Capital<br />

Defined - Trading Plan Exercise – Hedging<br />

Plan – Hedging examples and exercises<br />

– Options - Derivatives Trading, Trading Illustrations<br />

- Options Exercise<br />

Suggested Readings<br />

1. Energy Price Risk: Trading and Price Risk Management<br />

- Hardcover (Feb. 22, 2003) by Tom<br />

James<br />

80 • <strong>Institute</strong> <strong>of</strong> <strong>Public</strong> <strong>Enterprise</strong> – <strong>PGP</strong> Student <strong>Handbook</strong><br />

2. Managing Commodity Price Risk in Developing<br />

Countries (World Bank) - Hardcover (Mar. 1, 1994)<br />

by Pr<strong>of</strong>essor Stijn Claessens and Pr<strong>of</strong>essor Ronald<br />

C. Duncan<br />

3. Sure Thing Commodity Trading: How Seasonal<br />

Factors Influence Commodity Prices - Hardcover<br />

(Apr. 1, 1987) by Larry Williams<br />

4. Risk management in commodity and financial<br />

markets - Rita L. D’Ecclesia<br />

5. Energy Markets: Price Risk Management and<br />

Trading - Tom James - 374 pages<br />

6. Commodity Trading Advisors: Risk Performance<br />

... - Greg N Gregoriou, Vassilios Karavas, ... - 458<br />

pages<br />

7. Energy and Power Risk Management: New ... - Alexander<br />

Eydeland, Krzyszt<strong>of</strong> Wolyniec - 506 pages<br />

INNOVATION MANAGEMENT<br />

Code: 402IB Credits: 3<br />

Unit I : Introduction – Significance <strong>of</strong> Innovation<br />

Management, Innovation in an organizational<br />

context, individuals in the innovation process,<br />

Key concepts in innovation: design, innovation<br />

and invention, successful innovations, types<br />

<strong>of</strong> innovation, technology and innovation.<br />

Models <strong>of</strong> Innovation: serendipity, linear models,<br />

simultaneous coupling model, interactive<br />

model. Innovation as a management process,<br />

framework for the management <strong>of</strong> innovation.<br />

Market Orientation: Innovation and market vision,<br />

innovation new products and consumption<br />

patterns, innovation diffusion theories.<br />

Globalization: Globalization for innovation:<br />

Innovation for Energy Economics The Internet-a<br />

case in technology change strategic<br />

innovation process.<br />

Entrepreneurship and Innovation: Entrepreneurial<br />

Ventures and their prospects,

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