Financial Derivative
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This document tell about Basics of Financial Derivatives.It Focus on Forwards , Futures , Option - Call Option and Put Options, and Swaps
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Forward
This document discusses various types of forward contracts and derivatives. It defines a forward contract as a customized bilateral contract to buy or sell an asset at a specific future price. Forward contracts involve counterparty risk but no cash flows up front. The document outlines how forward positions can be terminated and discusses compensation for dealers. It also provides examples of equity, bond, foreign exchange rate and interest rate forward contracts.
Futures and forwards
The document discusses futures and forward contracts. It defines them as agreements between two parties where one party agrees to deliver an asset at a specified future date at a predetermined price. The key differences between futures and forwards are that futures contracts are traded on exchanges, standardized, and can be traded until maturity, while forwards are private agreements that are not standardized and typically held to delivery date. Futures allow for more liquidity and offsetting of positions compared to forwards.
Introdaction of derivative market
Derivatives are financial instruments whose value is dependent on an underlying asset. The three main types of derivatives are forwards, futures, and options. Forwards and futures are contracts to buy or sell an asset at a future date at a predetermined price, while options provide the right but not obligation to buy or sell an asset at a strike price. Derivatives allow traders to hedge risk, reduce transaction costs, manage portfolios, and enhance liquidity in markets.
Derivatives and Hedging | Finance
Derivative is a financial instrument that derives its value from the value of some underlying asset. When the prices of commodities, currencies, securities, and interest rate are not fixed and keep on fluctuating, it becomes very necessary to hedge. Copy the link given below and paste it in new browser window to get more information on Derivatives and Hedging:- http://www.transtutors.com/homework-help/finance/derivaties-and-hedging.aspx
Topic 8 Managing Risk
The document discusses various financial instruments for hedging risks like interest rate, exchange rate, commodity price and quantity volatility. It describes forwards, futures, swaps and options contracts, how they can be used to hedge different types of risks, and their similarities and differences in terms of credit risk, standardization and cash flows.
Derivative - Options
What Are Options?, Call Option, Put option, Options Terminology, Types of Options, Options Spreads, Long Calls and Puts, Spreads Bulls and Butterflies,
Forward and futures contracts
Futures and forward contracts lock in a price today for the purchase or sale of an asset in the future. Futures contracts are standardized and traded on exchanges, while forwards are negotiated privately. Both involve a short party committing to sell an asset and a long party committing to buy, with payment occurring at maturity. Margin requirements for futures ensure neither party defaults, as positions are marked to market daily and cash added or subtracted to offset price changes. Swaps involve exchanging cash flows, most commonly interest rate payments, with plain vanilla swaps exchanging fixed for floating rate obligations.
Forwards and futures raju indukoori
This document discusses forwards, futures contracts, and margins in derivatives trading. It defines forwards and futures, comparing their key differences. Forwards are private contracts between two parties to buy or sell an asset at a future date, while futures are exchange-traded versions of these contracts that are standardized and require margin. The document also outlines the nature of futures contracts, their advantages and disadvantages, types, pricing, positions, payoffs, and how hedging with futures works. Finally, it describes the different types of margins used in futures trading like initial, special, delivery and daily margins to manage risk.
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Forward
This document discusses various types of forward contracts and derivatives. It defines a forward contract as a customized bilateral contract to buy or sell an asset at a specific future price. Forward contracts involve counterparty risk but no cash flows up front. The document outlines how forward positions can be terminated and discusses compensation for dealers. It also provides examples of equity, bond, foreign exchange rate and interest rate forward contracts.
Futures and forwards
The document discusses futures and forward contracts. It defines them as agreements between two parties where one party agrees to deliver an asset at a specified future date at a predetermined price. The key differences between futures and forwards are that futures contracts are traded on exchanges, standardized, and can be traded until maturity, while forwards are private agreements that are not standardized and typically held to delivery date. Futures allow for more liquidity and offsetting of positions compared to forwards.
Introdaction of derivative market
Derivatives are financial instruments whose value is dependent on an underlying asset. The three main types of derivatives are forwards, futures, and options. Forwards and futures are contracts to buy or sell an asset at a future date at a predetermined price, while options provide the right but not obligation to buy or sell an asset at a strike price. Derivatives allow traders to hedge risk, reduce transaction costs, manage portfolios, and enhance liquidity in markets.
Derivatives and Hedging | Finance
Derivative is a financial instrument that derives its value from the value of some underlying asset. When the prices of commodities, currencies, securities, and interest rate are not fixed and keep on fluctuating, it becomes very necessary to hedge. Copy the link given below and paste it in new browser window to get more information on Derivatives and Hedging:- http://www.transtutors.com/homework-help/finance/derivaties-and-hedging.aspx
Topic 8 Managing Risk
The document discusses various financial instruments for hedging risks like interest rate, exchange rate, commodity price and quantity volatility. It describes forwards, futures, swaps and options contracts, how they can be used to hedge different types of risks, and their similarities and differences in terms of credit risk, standardization and cash flows.
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Forward and futures contracts
Futures and forward contracts lock in a price today for the purchase or sale of an asset in the future. Futures contracts are standardized and traded on exchanges, while forwards are negotiated privately. Both involve a short party committing to sell an asset and a long party committing to buy, with payment occurring at maturity. Margin requirements for futures ensure neither party defaults, as positions are marked to market daily and cash added or subtracted to offset price changes. Swaps involve exchanging cash flows, most commonly interest rate payments, with plain vanilla swaps exchanging fixed for floating rate obligations.
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This document discusses forwards, futures contracts, and margins in derivatives trading. It defines forwards and futures, comparing their key differences. Forwards are private contracts between two parties to buy or sell an asset at a future date, while futures are exchange-traded versions of these contracts that are standardized and require margin. The document also outlines the nature of futures contracts, their advantages and disadvantages, types, pricing, positions, payoffs, and how hedging with futures works. Finally, it describes the different types of margins used in futures trading like initial, special, delivery and daily margins to manage risk.
Financial derivatives ppt
A derivative is a financial instrument whose value is derived from the value of another asset, known as the underlying. There are three main types of traders in the derivatives market: hedgers who use derivatives to reduce risk, speculators who trade for profits, and arbitrageurs who take advantage of price discrepancies across markets. Derivatives can be traded over-the-counter (OTC) or on an exchange, and provide various economic benefits such as risk reduction and enhanced market liquidity.
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Forward Rate Agreements, or FRAs, are a way for a company to lock in an interest rate today, for money the company intends to lend or borrow in the future.
Glossary
This document is a glossary from TD Bank Financial Group's 2004 annual report that defines various financial and banking terms. It includes over 50 definitions of common terms used in banking and finance, such as acceptances, amortized cost, average earning assets, basis points, capital asset pricing model, commitments to extend credit, derivative financial instruments, earnings per share, foreign exchange forwards, hedging, impaired loans, mark-to-market, net interest income, options, provision for credit losses, return on common shareholders' equity, securities purchased under resale agreements, and swaps. The glossary provides concise explanations of these important terms to help readers understand concepts in banking and finance.
Warrants (1)
Warrants give holders the right to purchase shares of common stock from a company at a fixed price for a specified period of time. They are often issued with bonds. There are different types of warrants including those attached to common stock or bonds, debt warrants, and put warrants. Convertible bonds can be exchanged for a fixed number of shares and have characteristics of both debt and equity securities. Call options give the right to purchase shares at a specified price within a set time, while warrants are issued by companies to raise capital.
PB601 Investment Management
This document defines and compares futures contracts and forward contracts. A futures contract is a standardized agreement traded on an exchange to buy or sell an asset at a predetermined price and date. A forward contract is a private agreement between two parties for the purchase or sale of an asset at a specified future date. The document outlines the functions of hedging, speculating, and market making for futures and forward users. It provides examples of different types of futures contracts including commodities, equities, currencies, metals, and financial futures. The main differences between futures and forward contracts are that futures have no default risk, daily profit/loss settlement, and public trading, while forwards pose a default risk and profits/losses are realized at expiry through
Forward and Futures Contract
Derivatives are financial instruments whose value is derived from an underlying asset. Forward and futures contracts are types of derivatives that allow parties to lock in a price today to purchase or sell an asset in the future. A forward contract is a customized over-the-counter agreement between two parties, while a futures contract is traded on an exchange with standardized terms. Both require mark-to-market adjustments and margin payments to mitigate risks from price fluctuations until contract settlement.
Security Market (WARRANTS)
This document discusses different types of warrants in the security market. Warrants are securities that allow the holder to purchase the underlying stock of the issuing company or other securities. There are equity warrants, covered warrants, basket warrants, index warrants, detachable warrants, and naked warrants. Warrants are often attached to bonds or preferred stock to entice investors with the potential to profit from share price increases. Warrants provide zero-cost financing for companies and act as a sweetener for investors while ensuring companies will receive funds if the warrants are exercised in the future. The warrant market involves gambling on unknown future events, so investors should carefully assess the potential return within the warrant period and how warrant prices may impact share prices.
ITM-SIA (Mumbai) - Derivatives (final)
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Hedging is an investment strategy used to reduce risk from adverse price movements in an asset. It involves taking an offsetting position in a related security through mechanisms like futures contracts. Hedging instruments include derivatives like forward contracts and futures contracts. Options can also be used for hedging purposes through call and put options.
Arbitrage is an investment strategy that exploits temporary price differences between two or more markets to lock in a riskless profit. It involves simultaneously buying and selling the same asset to benefit from a price discrepancy. Common types of arbitrage include spatial, merger, municipal bond, and statistical arbitrage.
Warrants by skmr
Warrants are call options that give the holder the right to buy shares of common stock from a company at a fixed price for a set period of time. Warrants are often issued with bonds to make them more attractive to investors. They can be detachable, puttable if sold back to the company, or naked if issued on their own. Convertible bonds are similar to bonds with warrants but cannot be separated into different securities. Convertible bonds provide value from the straight bond, conversion option, and potential appreciation if converted to equity. They help align incentives of bondholders and stockholders.
Sg credit derivatives overview
This document provides an introduction to credit derivatives. It defines credit risk and credit deterioration risk as the risks of financial loss due to a borrower defaulting or their credit quality decreasing. Credit derivatives allow investors to transfer these risks. The global market for credit derivatives has grown significantly. Common credit derivative products include credit default swaps, which transfer default risk, total rate of return swaps, which transfer both credit and price risk, and credit spread products. The document discusses the key features and uses of these different credit derivative products.
Forex risk management techniques
This document discusses various techniques for managing foreign exchange risk in Forex dealings. It outlines short-term and long-term risks and how businessmen can manage risks and make profits. Some key risk management techniques discussed include hedging using forwards, money markets, rollover contracts, currency futures, options, and swaps. Forwards involve buying/selling a currency at a fixed future date. Money markets and rollover contracts help cover exposed positions. Currency futures and options provide tools to hedge currency risk. Currency swaps exchange one currency for another at pre-set terms.
Forward Rate Agreement
In FRA, one user agrees to lend or borrow to another a specific amount of money at a future date and at a fixed rate.
The buyer enters into an FRA to get protection from any future rise in the interest rate. The seller enters into FRA to get protection from dropping interest rates.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/forward-rate-agreement-meaning-features-example-and-more
Counterparty Risk in the Over-The-Counter Derivatives Market
This paper discusses counterparty risk that may stem from the over-the-counter (OTC) derivatives market in the wake of the 2008 financial crisis. The paper aims to assess potential losses to the financial system if one or more major banks or brokers default on their OTC derivative contracts. To estimate counterparty risk, the paper calculates potential losses under different scenarios, taking into account the exposure of the financial system to institutions and the probability that other institutions may also default if a major counterparty fails. The results are discussed in the context of ensuring banking system stability.
hedging risk and exposure
The document discusses various methods for hedging interest rate risk and currency exposure using financial instruments like futures contracts. It provides examples of how companies can use futures contracts on Eurodollar deposits and Treasury bills to hedge transaction exposure from lending, borrowing, and currency fluctuations. By taking positions in these futures contracts, companies can lock in interest rates and protect themselves if rates move adversely in the future.
forward and future contract
A forward contract is a customized agreement between two parties to buy or sell an asset at a predetermined future date and price, with no upfront payment required. It is used primarily for hedging and has counterparty risk.
A futures contract is a standardized agreement traded on a futures exchange to buy or sell an underlying asset at a predetermined future date and price, with an initial margin payment required. It is used more for speculation and has low counterparty risk due to clearing house guarantees.
The key differences are that forward contracts are customized over-the-counter agreements while futures contracts are standardized exchange-traded agreements, with futures requiring an initial margin and having a clearing house to reduce counterparty risk.
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This document discusses futures, options, and derivatives. It defines futures as contracts to buy or sell assets at a specified price and time. Options give the holder the right but not obligation to buy or sell and exist in different types like real, traded, vanilla, and exotic. There are European, American, and Bermuda option models depending on when the contract can be exercised. Options have call and put types. Derivatives are speculative instruments that allow risk management but can also concentrate risk if not used properly.
Derivatives market
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
A Presentation on Financial Derivatives
This document provides an overview of a presentation on financial derivatives. It includes sections on financial markets, types of derivatives markets, players in derivatives markets, and types of derivatives. Specific derivatives discussed include call options, put options, and interest rate and currency swaps. The document concludes that while derivatives are commonly used to hedge and avoid risk, they cannot completely eliminate risk for firms - they can only help minimize the risks involved in trades.
Derivatives
This document provides an overview of derivatives, including definitions, types of derivatives like forwards, futures, options, and swaps. It discusses how derivatives derive their value from underlying assets and how they can be used to hedge or speculate. Key terms related to derivatives markets and contracts are defined. The roles of various participants and how derivatives can help parties manage financial risks are also summarized.
Derivatives
This document defines and explains various types of derivatives such as forwards, futures, options, and swaps. It discusses how derivatives derive their value from underlying assets like stocks, bonds, currencies, and commodities. Key points covered include how derivatives work, common uses of derivatives for hedging, speculation, and arbitrage, and examples of different derivative products and markets. News snippets at the end summarize the introduction of new derivative indexes in India relating to public sector companies and infrastructure stocks, as well as a new cash-futures spread product.
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Financial derivatives ppt
A derivative is a financial instrument whose value is derived from the value of another asset, known as the underlying. There are three main types of traders in the derivatives market: hedgers who use derivatives to reduce risk, speculators who trade for profits, and arbitrageurs who take advantage of price discrepancies across markets. Derivatives can be traded over-the-counter (OTC) or on an exchange, and provide various economic benefits such as risk reduction and enhanced market liquidity.
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Derivative, Types of Derivative, Risk involved in derivative contracts, Commonly Used Terms, Long positions, Short Position, Spot Contract, Expiration, Market Maker, Bid Ask Spread.
Forward Rate Agreement Calculation
Forward Rate Agreements, or FRAs, are a way for a company to lock in an interest rate today, for money the company intends to lend or borrow in the future.
Glossary
This document is a glossary from TD Bank Financial Group's 2004 annual report that defines various financial and banking terms. It includes over 50 definitions of common terms used in banking and finance, such as acceptances, amortized cost, average earning assets, basis points, capital asset pricing model, commitments to extend credit, derivative financial instruments, earnings per share, foreign exchange forwards, hedging, impaired loans, mark-to-market, net interest income, options, provision for credit losses, return on common shareholders' equity, securities purchased under resale agreements, and swaps. The glossary provides concise explanations of these important terms to help readers understand concepts in banking and finance.
Warrants (1)
Warrants give holders the right to purchase shares of common stock from a company at a fixed price for a specified period of time. They are often issued with bonds. There are different types of warrants including those attached to common stock or bonds, debt warrants, and put warrants. Convertible bonds can be exchanged for a fixed number of shares and have characteristics of both debt and equity securities. Call options give the right to purchase shares at a specified price within a set time, while warrants are issued by companies to raise capital.
PB601 Investment Management
This document defines and compares futures contracts and forward contracts. A futures contract is a standardized agreement traded on an exchange to buy or sell an asset at a predetermined price and date. A forward contract is a private agreement between two parties for the purchase or sale of an asset at a specified future date. The document outlines the functions of hedging, speculating, and market making for futures and forward users. It provides examples of different types of futures contracts including commodities, equities, currencies, metals, and financial futures. The main differences between futures and forward contracts are that futures have no default risk, daily profit/loss settlement, and public trading, while forwards pose a default risk and profits/losses are realized at expiry through
Forward and Futures Contract
Derivatives are financial instruments whose value is derived from an underlying asset. Forward and futures contracts are types of derivatives that allow parties to lock in a price today to purchase or sell an asset in the future. A forward contract is a customized over-the-counter agreement between two parties, while a futures contract is traded on an exchange with standardized terms. Both require mark-to-market adjustments and margin payments to mitigate risks from price fluctuations until contract settlement.
Security Market (WARRANTS)
This document discusses different types of warrants in the security market. Warrants are securities that allow the holder to purchase the underlying stock of the issuing company or other securities. There are equity warrants, covered warrants, basket warrants, index warrants, detachable warrants, and naked warrants. Warrants are often attached to bonds or preferred stock to entice investors with the potential to profit from share price increases. Warrants provide zero-cost financing for companies and act as a sweetener for investors while ensuring companies will receive funds if the warrants are exercised in the future. The warrant market involves gambling on unknown future events, so investors should carefully assess the potential return within the warrant period and how warrant prices may impact share prices.
ITM-SIA (Mumbai) - Derivatives (final)
ITM-SIA (Mumbai) - Finance Group
Chirag Purohit
Diwanshu Sharma,
Kalian Srinivasan,
Kuber Mahajan,
Navnath Pawar.
Nirmal
Hedging is an investment strategy used to reduce risk from adverse price movements in an asset. It involves taking an offsetting position in a related security through mechanisms like futures contracts. Hedging instruments include derivatives like forward contracts and futures contracts. Options can also be used for hedging purposes through call and put options.
Arbitrage is an investment strategy that exploits temporary price differences between two or more markets to lock in a riskless profit. It involves simultaneously buying and selling the same asset to benefit from a price discrepancy. Common types of arbitrage include spatial, merger, municipal bond, and statistical arbitrage.
Warrants by skmr
Warrants are call options that give the holder the right to buy shares of common stock from a company at a fixed price for a set period of time. Warrants are often issued with bonds to make them more attractive to investors. They can be detachable, puttable if sold back to the company, or naked if issued on their own. Convertible bonds are similar to bonds with warrants but cannot be separated into different securities. Convertible bonds provide value from the straight bond, conversion option, and potential appreciation if converted to equity. They help align incentives of bondholders and stockholders.
Sg credit derivatives overview
This document provides an introduction to credit derivatives. It defines credit risk and credit deterioration risk as the risks of financial loss due to a borrower defaulting or their credit quality decreasing. Credit derivatives allow investors to transfer these risks. The global market for credit derivatives has grown significantly. Common credit derivative products include credit default swaps, which transfer default risk, total rate of return swaps, which transfer both credit and price risk, and credit spread products. The document discusses the key features and uses of these different credit derivative products.
Forex risk management techniques
This document discusses various techniques for managing foreign exchange risk in Forex dealings. It outlines short-term and long-term risks and how businessmen can manage risks and make profits. Some key risk management techniques discussed include hedging using forwards, money markets, rollover contracts, currency futures, options, and swaps. Forwards involve buying/selling a currency at a fixed future date. Money markets and rollover contracts help cover exposed positions. Currency futures and options provide tools to hedge currency risk. Currency swaps exchange one currency for another at pre-set terms.
Forward Rate Agreement
In FRA, one user agrees to lend or borrow to another a specific amount of money at a future date and at a fixed rate.
The buyer enters into an FRA to get protection from any future rise in the interest rate. The seller enters into FRA to get protection from dropping interest rates.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/forward-rate-agreement-meaning-features-example-and-more
Counterparty Risk in the Over-The-Counter Derivatives Market
This paper discusses counterparty risk that may stem from the over-the-counter (OTC) derivatives market in the wake of the 2008 financial crisis. The paper aims to assess potential losses to the financial system if one or more major banks or brokers default on their OTC derivative contracts. To estimate counterparty risk, the paper calculates potential losses under different scenarios, taking into account the exposure of the financial system to institutions and the probability that other institutions may also default if a major counterparty fails. The results are discussed in the context of ensuring banking system stability.
hedging risk and exposure
The document discusses various methods for hedging interest rate risk and currency exposure using financial instruments like futures contracts. It provides examples of how companies can use futures contracts on Eurodollar deposits and Treasury bills to hedge transaction exposure from lending, borrowing, and currency fluctuations. By taking positions in these futures contracts, companies can lock in interest rates and protect themselves if rates move adversely in the future.
forward and future contract
A forward contract is a customized agreement between two parties to buy or sell an asset at a predetermined future date and price, with no upfront payment required. It is used primarily for hedging and has counterparty risk.
A futures contract is a standardized agreement traded on a futures exchange to buy or sell an underlying asset at a predetermined future date and price, with an initial margin payment required. It is used more for speculation and has low counterparty risk due to clearing house guarantees.
The key differences are that forward contracts are customized over-the-counter agreements while futures contracts are standardized exchange-traded agreements, with futures requiring an initial margin and having a clearing house to reduce counterparty risk.
Futures&options Derivatives.MCB
This document discusses futures, options, and derivatives. It defines futures as contracts to buy or sell assets at a specified price and time. Options give the holder the right but not obligation to buy or sell and exist in different types like real, traded, vanilla, and exotic. There are European, American, and Bermuda option models depending on when the contract can be exercised. Options have call and put types. Derivatives are speculative instruments that allow risk management but can also concentrate risk if not used properly.
Derivatives market
The document provides an overview of derivatives markets, including the key terms and participants. It discusses how derivatives help transfer and hedge risks, facilitate price discovery, and catalyze economic activity. The main types of derivatives are forwards, futures, swaps, and options. Forwards and swaps are over-the-counter derivatives privately negotiated between parties, while futures and options are exchange-traded standardized contracts. Hedgers use derivatives to offset price risks, while speculators and arbitrageurs take positions to profit from price movements.
A Presentation on Financial Derivatives
This document provides an overview of a presentation on financial derivatives. It includes sections on financial markets, types of derivatives markets, players in derivatives markets, and types of derivatives. Specific derivatives discussed include call options, put options, and interest rate and currency swaps. The document concludes that while derivatives are commonly used to hedge and avoid risk, they cannot completely eliminate risk for firms - they can only help minimize the risks involved in trades.
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This document provides an overview of derivatives, including definitions, types of derivatives like forwards, futures, options, and swaps. It discusses how derivatives derive their value from underlying assets and how they can be used to hedge or speculate. Key terms related to derivatives markets and contracts are defined. The roles of various participants and how derivatives can help parties manage financial risks are also summarized.
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This document defines and explains various types of derivatives such as forwards, futures, options, and swaps. It discusses how derivatives derive their value from underlying assets like stocks, bonds, currencies, and commodities. Key points covered include how derivatives work, common uses of derivatives for hedging, speculation, and arbitrage, and examples of different derivative products and markets. News snippets at the end summarize the introduction of new derivative indexes in India relating to public sector companies and infrastructure stocks, as well as a new cash-futures spread product.
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The document discusses various derivatives instruments like forwards, futures, and options. Forwards are bilateral contracts where the underlying asset is delivered on maturity. Futures are exchange-traded standardized contracts that are cash settled daily. Options give the holder the right but not obligation to buy/sell the underlying at a strike price. Derivatives allow for hedging against price risks and speculating on market movements. They provide flexibility and leverage compared to trading the actual underlying assets.
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Derivatives are financial instruments whose value is dependent on an underlying asset. The three main types of derivatives are forwards, futures, and options. Forwards and futures are contracts to buy or sell an asset at a future date at a predetermined price, while options provide the right but not obligation to buy or sell an asset at a strike price. Derivatives allow traders to hedge risk, reduce transaction costs, manage portfolios, and enhance liquidity. Key participants in derivatives markets include hedgers who offset risk, speculators who take on risk, and arbitrageurs who exploit pricing discrepancies across markets.
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- A forward market allows for the future delivery of stocks, currencies, or commodities at a predetermined price, protecting buyers and sellers from price fluctuations. Forward contracts are privately negotiated over-the-counter, while futures contracts are standardized and traded on an exchange.
- The main purposes of forward and futures markets are to hedge against risks from fluctuating prices and interest rates and to allow investors to speculate. These markets provide flexibility and reduce risks for financial companies and investors.
investment analysis and derivatives
Derivatives are financial instruments whose value is derived from an underlying asset. There are several types of derivatives:
1) Forward contracts are customized agreements between two parties to buy or sell an asset at a future date for a fixed price, exposing the parties to counterparty risk.
2) Futures contracts are similar to forwards but are exchange-traded, with standardized terms, eliminating counterparty risk.
3) Options contracts give the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before the expiration date.
4) Warrants and convertibles give holders the right to buy or convert into the underlying asset within a given time period.
Investment analysis and derivatives
Derivatives are financial instruments whose value is derived from an underlying asset. There are several types of derivatives:
1) Forward contracts are customized agreements between two parties to buy or sell an asset at a future date for a fixed price, exposing the parties to counterparty risk.
2) Futures contracts are similar to forwards but are exchange-traded, with standardized terms, eliminating counterparty risk.
3) Options contracts give the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price on or before the expiration date.
4) Warrants and convertibles give holders the right to buy or convert into the underlying asset within a given time period.
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- Derivative contracts derive their value from an underlying asset and allow investors to speculate on price movements without owning the asset. Common derivatives include futures, options, swaps, and forwards.
- An options contract gives the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined strike price by a certain expiration date. Options provide flexibility and can be used to take advantage of price changes or protect against losses.
- Key terms related to options include the strike price, which remains fixed, and moneyness, which describes the relationship between the strike price and current market price. Factors like time to expiration and volatility also impact options pricing.
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The document summarizes the history and types of derivatives in India. It discusses:
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- The main purpose of derivatives is to transfer risk from one party to another through hedging. This allows farmers, for example, to guarantee prices and encourage investment.
Financial derivatives types & participants
This document discusses types of financial derivatives and their participants. It describes forwards, futures, options, and swaps. Forwards and futures are contracts to buy or sell an asset at a future date. Futures are standardized and exchange-traded, while forwards are customized over-the-counter contracts. Options provide the right to buy or sell an asset in the future. Swaps involve exchanging cash flows of interest or currencies. Derivatives are used for hedging risk, speculation, and arbitrage.
Derivatives
The document discusses derivatives, which are financial instruments whose value is based on an underlying asset. It covers various types of derivatives like futures, forwards, swaps, and options. Futures are standardized contracts to buy or sell an asset at a future date, while forwards involve customized non-standardized contracts. Swaps involve exchanging cash flows between two parties. Options give the holder the right but not obligation to buy or sell the underlying asset.
Futures and options
Futures contracts obligate the buyer and seller to exchange an asset at a predetermined price on a future date. Options provide the buyer the right, but not obligation, to buy or sell the underlying asset at a predetermined strike price by a predetermined expiration date. The buyer pays a premium for this right. There are call and put options, where calls provide the right to buy and puts provide the right to sell. Options have limited downside risk for the buyer compared to futures contracts, but also have time decay as they approach expiration.
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Networking through friends and former colleagues is the best way to look for opportunities, rather than randomly searching online or sending unsolicited emails. It is important to have the right skills for the job and understand how your skills align with the company's needs and vision. Candidates should thoroughly review all social media profiles and ensure information is consistent across platforms, as many employers will research candidates online and unprofessional content could deter hiring.
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Changing expectations after an interview reflects badly on the candidate and increases chances of rejection. Proper market research on prevailing rates for the role and location is important before an interview to avoid expressing unrealistic expectations during negotiations. Candidates should also follow up if not contacted after an interview, thank recruiters for their time, and stay connected on professional networks even if not selected in order to maintain positive relationships.
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Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
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【本科硕士】皇家墨尔本理工大学皇家墨尔本理工大学本科学位证成绩单（GPA修改）；学历认证（教育部认证）；大学Offer录取通知书留信认证使馆认证；雅思语言证书等高仿类证书。
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1客户提供办理皇家墨尔本理工大学皇家墨尔本理工大学本科学位证成绩单信息：姓名生日专业学位毕业时间等（如信息不确定可以咨询顾问：我们有专业老师帮你查询）；
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6快递给客户（国内顺丰国外DHLUPS等快读邮寄）
真实网上可查的证明材料
1教育部学历学位认证留服官网真实存档可查永久存档。
2留学回国人员证明（使馆认证）使馆网站真实存档可查。
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In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.Detailed power point presentation on compound interest and how it is calculated
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一比一原版宾夕法尼亚大学毕业证(UPenn毕业证书)学历如何办理
挂科购买【微信号:176555708】【挂科购买(UPenn毕业证书)】【微信号:176555708】《成绩单、外壳、offer、真实留信官方学历认证（永久存档/真实可查）》采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【我们承诺采用的是学校原版纸张（纸质、底色、纹路）我们拥有全套进口原装设备，特殊工艺都是采用不同机器制作，仿真度基本可以达到100%，所有工艺效果都可提前给客户展示，不满意可以根据客户要求进行调整，直到满意为止！】
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信号:176555708】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信号:176555708】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
留信网服务项目：
1、留学生专业人才库服务（留信分析）
2、国（境）学习人员提供就业推荐信服务
3、留学人员区块链存储服务
【关于价格问题（保证一手价格）】
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：客户在留信官方认证查询网站查询到认证通过结果后付款，不成功不收费！
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Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
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Financial Derivative
- 1. Financial Derivative A Financial Instrument that derives its value from another underlying asset. Underlying asset can be Shares,Bonds, interest rate, property, commodities, Currencies , Market Indexes. Speculation the person who takes risk It is short term buying and selling of assets that have significant risk of loss and potential gain. Hedging the person who reduces its risk It is an investment to reduce the risk of adverse price movement in an asset The Financial Derivative are executed for Speculation and Hedging. Types ofFinancial Derivatives Forward; Futures; Options and Swaps. Forward Contract Future Contract Tailor made contract Standardized contract. Agreement between parties to buy and sell the underlying asset at a pre-specified date and at a specific price in future Agreement between parties to buy and sell the underlying asset at a future-specified date and at a fixed price. Risk Involved Default Risk of counterparties Not Traded in Exchange Settlement happen on maturity date Risk Involved Loss of Initial Margin Default risk (but it is lower than Forward Contract) Advantages of Forward Contract No initial margin required Advantages of Future Contract It is traded in stock exchange. Contract can be sold before delivery Liquidity is low because it is not traded in exchanges Liquidity is high as it is traded in exchanges Note:Future is “Zero Sum Game”. Overall Profit = Overall Loss in stock market Options A contract between an Option Writer(Seller) and Option Buyer(Holder) It gives the option buyer a right but not obligation to either buy or sell an asset/goods/service at a predetermined price by a pre specified date. Call Option Put Option Buyer has “Right to Buy” the asset/goods/service @ pre- determined price by pre-determined date. Buyer has “Right to Sell” the asset/goods/service @ pre- determined price by pre-determined date. Investor expects for Price to rise. Investor expects for Price to fall. Profitability gains can be unlimited since the price rise cannot be capped. Profitability gains are limited since the price can fall steadily but will stop at Zero. It allows buying of stocks. It allows selling of stocks. Considered a security deposit allowing taking a product at a certain fixed price. It is like an Insurance offering protection against a loss in value. Swaps It is a derivative contract where one party exchanges the cash flow with another. A company paying a variable rate of interest may swap its interest payments with another company that they will then pay the first company a fixed rate.