The Dubai Financial Market is one of three stock exchanges in the United Arab Emirates. Lately it has started trading bonds issued by the government and acquired a majority shareholding in the NASDAQ Dubai exchange. The latter exchange was set up to trade international stocks and derivative securities. In this case, we have selected the Dubai Financial Market common stock as a benchmark model to demonstrate the use of financial information in trading equity derivatives. The investment analysis and financial decision-making on the Dubai Financial Market can aid in pricing equity derivatives, in hedging financial market risk exposures, and in developing quantitative trading strategies for investments under different market circumstances. This case includes interactive software (see Resources tab) to assist with the valuation of options contracts on stocks and stock market indices
