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.
What Are Options?, Call Option, Put option, Options Terminology, Types of Options, Options Spreads, Long Calls and Puts, Spreads Bulls and Butterflies,
The STRADDLE is a trading strategy that involves the use of options. This strategy calls for taking a neutral stand on the market. And thus, suggests buying or selling, call and put options of the exact same strike price, with the same expiry date for the same underlying security.
https://efinancemanagement.com/derivatives/straddle-2
Carley Garner discussing the necessity of being aware of key differences in stock options and options on futues as well as a fundamental account of long and short option strategies. To listent to a recorded presentation of this slide show, visit: http://tinyurl.com/CGrecording
What Are Options?, Call Option, Put option, Options Terminology, Types of Options, Options Spreads, Long Calls and Puts, Spreads Bulls and Butterflies,
The STRADDLE is a trading strategy that involves the use of options. This strategy calls for taking a neutral stand on the market. And thus, suggests buying or selling, call and put options of the exact same strike price, with the same expiry date for the same underlying security.
https://efinancemanagement.com/derivatives/straddle-2
Carley Garner discussing the necessity of being aware of key differences in stock options and options on futues as well as a fundamental account of long and short option strategies. To listent to a recorded presentation of this slide show, visit: http://tinyurl.com/CGrecording
http://www.options-trading-education.com/24043/straddle-options/
Straddle Options
When an options trader is not sure which way prices will go in a volatile market he or she often uses straddle options. Straddle options both long and short let a trader stake out potentially profitable positions for both rising and falling markets. Which route a trader takes in using straddle options will depend on whether he wants to buy or sell options contracts.
Going Long
A long straddle is buying both a call and a put on the same stock with the same expiration date. In a long straddle options strategy the worst a trader can do is lose the cost of the premiums paid for the call and the put if the stock does not change price. These straddle options have potentially unlimited potential if the stock price changes significantly, up or down.
Long Straddle Calls
If the stock price goes up the trader exercises the call option, sells the stock at the spot price and buys at the strike price. The profit is the price of 100 shares per contract at the spot price minus the strike price, minus the cost of premiums on both put and call options.
Long Straddle Puts
If the stock goes down in price the trader exercises the put option and sells the stock at the strike price and buys at the new, lower market price, the spot price. The profit will be the price of 100 shares per contract at the strike price minus the spot price minus the premium cost of both put and call options.
This strategy is useful in a volatile and unpredictable market. It carries twice the overhead of a call or put trade. But, the trader cuts down on the risk of missing out on an unexpected market move by covering both up and down eventualities. The only time when a trader loses with a long straddle is when the stock price does not change and then he is only out the cost of two options contracts.
Going Short
A short straddle strategy is selling both a put and a call on the same stock with the same options expiration dates. If the stock does not go up or down the options trader gains two premiums, one for the call and one for the put. Straddle options like these can be cash cows for a trader who has done his homework and only sells contracts on stocks that have very little likelihood of going up or down.
Volatile Markets and Big Losses
Whereas a long straddle is ideal for a volatile market a short straddle should only be used in a quiet market. As with all selling of options contracts the losses can be enormous if a stock price changes greatly. Which is why selling options contracts is so commonly limited to traders with very deep pockets.
Volatile Markets and Big Gains
Volatile markets bring us back to the long straddle. This is the ideal strategy for a market that is crazy in its volatility.
Risk Apportionment in the Purchase and Sale TransactionNow Dentons
In this presentation, FMC’s Leanne Krawchuk discusses risk apportionment in the purchase and sale transaction, including:
- Representations and Warranties
- Indemnity Clauses and Limitations
- Purchase Price Adjustments and Holdbacks/Escrow
- Maximize the Value Proposition
- Due Diligence
This presentation was made to enhance the overall experience of the school annual function. This was presented in front of the esteemed guests to give them a glimpse of the school and the science exhibition.
This slide was made by me when i was in school.
http://www.options-trading-education.com/24043/straddle-options/
Straddle Options
When an options trader is not sure which way prices will go in a volatile market he or she often uses straddle options. Straddle options both long and short let a trader stake out potentially profitable positions for both rising and falling markets. Which route a trader takes in using straddle options will depend on whether he wants to buy or sell options contracts.
Going Long
A long straddle is buying both a call and a put on the same stock with the same expiration date. In a long straddle options strategy the worst a trader can do is lose the cost of the premiums paid for the call and the put if the stock does not change price. These straddle options have potentially unlimited potential if the stock price changes significantly, up or down.
Long Straddle Calls
If the stock price goes up the trader exercises the call option, sells the stock at the spot price and buys at the strike price. The profit is the price of 100 shares per contract at the spot price minus the strike price, minus the cost of premiums on both put and call options.
Long Straddle Puts
If the stock goes down in price the trader exercises the put option and sells the stock at the strike price and buys at the new, lower market price, the spot price. The profit will be the price of 100 shares per contract at the strike price minus the spot price minus the premium cost of both put and call options.
This strategy is useful in a volatile and unpredictable market. It carries twice the overhead of a call or put trade. But, the trader cuts down on the risk of missing out on an unexpected market move by covering both up and down eventualities. The only time when a trader loses with a long straddle is when the stock price does not change and then he is only out the cost of two options contracts.
Going Short
A short straddle strategy is selling both a put and a call on the same stock with the same options expiration dates. If the stock does not go up or down the options trader gains two premiums, one for the call and one for the put. Straddle options like these can be cash cows for a trader who has done his homework and only sells contracts on stocks that have very little likelihood of going up or down.
Volatile Markets and Big Losses
Whereas a long straddle is ideal for a volatile market a short straddle should only be used in a quiet market. As with all selling of options contracts the losses can be enormous if a stock price changes greatly. Which is why selling options contracts is so commonly limited to traders with very deep pockets.
Volatile Markets and Big Gains
Volatile markets bring us back to the long straddle. This is the ideal strategy for a market that is crazy in its volatility.
Risk Apportionment in the Purchase and Sale TransactionNow Dentons
In this presentation, FMC’s Leanne Krawchuk discusses risk apportionment in the purchase and sale transaction, including:
- Representations and Warranties
- Indemnity Clauses and Limitations
- Purchase Price Adjustments and Holdbacks/Escrow
- Maximize the Value Proposition
- Due Diligence
This presentation was made to enhance the overall experience of the school annual function. This was presented in front of the esteemed guests to give them a glimpse of the school and the science exhibition.
This slide was made by me when i was in school.
Ultra-Lok® Band and Buckle Systems 10
BAND-FAST™ Precut and Assembled 11
COLOR-IT™ 12
BAND-IT® Band and Buckles 13
Hand Tools for Band and Buckle 13
VALU-STRAP™ and Clips 14
Corrosion Resistant Stainless Steel Bands 15-16
Scru-Lokt Buckles 15
All Purpose Band 16
Q-Band™ and Q-Clip™ 17
Pipe Patches 17
Sign Mounting Brack-Its 18
Mounting Plates 19
BAND-IT® Bolt/Clamps 19
Signal Mounts 19
ID Tagging Systems 20-21
Tie-Lok® Ties 23
Ultra-Lok® Ties 24
Ball-Lok Ties 24
Multi-Lok Ties 24
BAND-IT® Ties 25
Engineered Applications 26
IT Series Heavy Duty Pneumatic Production Tools 27
Ultra-Lok® Clamp Systems 30
Junior® Smooth ID Clamp Systems 31
Universal Clamps 32
Center Punch Clamp Systems 33
BAND-FAST™ Open End with Center Punch Clip 33
Worm Gear Clamps 34
Scru-Seal Clamping System 34
Scru-Band Clamping System 34
Tri-Lokt® Systems 35-36
Full Flow Hose Nipples 36
Swaged Hose Nipples 37
Male Hose Nipples 36-37
Hose Menders 37
Hand Tools 38
Power Tools 39
Patents, Trademarks, Codes, Approvals 40
Definitions and Abbreviations 41
Metals Data 42-43
Cloud computing is the area which is involving at a very fast rate. With the increase in the internet speed and the decrease in the cost associated with the technology and networking, cloud computing is gaining momentum. This presentation shows the use of cloud computing from the user's point of view, that is it deals with the use of cloud rather than going to the technical implementations of it.
PureView Technology, the secret behind the nokia's 41 megapixel cameraPuru Agrawal
PureView technology is a patented technology that Nokia uses in some of its smartphone's cameras. This technology makes use of bigger sensors and better image processing algorithms for getting better photos, better low light performance and loss-less zoom.
Derivative, Types of Derivative, Risk involved in derivative contracts, Commonly Used Terms, Long positions, Short Position, Spot Contract, Expiration, Market Maker, Bid Ask Spread.
The PowerPoint presentation on derivatives and their various types, such as futures, options, swaps, and hedging, provides a comprehensive understanding of these financial instruments and their applications in risk management and investment strategies. The presentation begins by explaining the concept of derivatives, highlighting their role in managing price fluctuations, mitigating risks, and maximizing investment opportunities. It then delves into the different types of derivatives, starting with futures contracts that enable parties to buy or sell assets at predetermined prices and dates. The presentation further explores options, which grant the right but not the obligation to buy or sell assets, and swaps, which involve the exchange of cash flows based on predefined conditions. Additionally, it covers hedging, a risk management technique that uses derivatives to offset potential losses in investments. With clear explanations and illustrative examples, this presentation equips the audience with the knowledge necessary to navigate the world of derivatives and employ them effectively in financial decision-making.
Derivative Trading and its types features .pdfJitender Dhalia
derivative concept
derivative types
forward contracts
future contract
option contract
swap contract
derivative participants or market player
advantages and disadvantages of derivative
function of derivative
contract between buyer and seller with derivative
derivative examples
4 major types it and suitable examples in each point
basic understanding of derivative
easy concept of contract
Descriptions and explanation of all types of derivative instruments to trade with on the capital market.
http://www.koffeefinancial.com/Static/Learn.aspx
2. HEDGING
Making an investment to reduce the risk of adverse price
movements in an asset. Normally, a hedge consists of taking
an offsetting position in a related security, such as a futures
contract.
An example of a hedge would be if you owned a stock, then
sold a futures contract stating that you will sell your stock at
a set price, therefore avoiding market fluctuations.
Investors use this strategy when they are unsure of what the
market will do. A perfect hedge reduces your risk to nothing
(except for the cost of the hedge).
3. Hedging - Concept
• Used everywhere all time - Story
• Negative event can not be prevented
• Risk Offsetting tool
• Similar to insurance
• Two securities with Negative correlation
• Not to make money but to reduce losses
4. Hedging Instruments
Derivatives
1. Forward Contracts
It is an agreement to buy or sell an asset at
a certain future time for certain price.
Example:
Shyam wants to buy a TV - Rs 10,000 -
no cash - Can buy it 3 months later - fears that prices will
rise - contract with the dealer - contract is settled at maturity.
5. 2. Future Contract
A future contract is an agreement
between two parties to buy or sell an asset at a certain
time in the future at a certain price. Index futures are
all futures contracts where the underlying is the stock
index and helps trader to take a view on the market as a
whole.
6. Hedging Options
• Call option: A contract that gives the owner the
right, but not the obligation, to buy an item in the
future, at a price decided now.
• Put option: A contract that gives the owner the right,
but not the obligation, to sell an item in the future, at
a price decided now.
7. ARBITRAGE
Arbitrage is basically buying in one market and
simultaneously selling in another, profiting from a
temporary difference. This is considered riskless profit
for the investor/trader.
8. An example of an arbitrage
opportunity. Let's say you are able to buy a toy doll for
$15 in Florida, but in Washington, the doll is selling
for $25. If you are able to buy the doll in Florida and
sell it in the Seattle market, you can profit from the
difference without any risk because the higher price of
the doll in Seattle is guaranteed.
9. Types of Arbitrage
• Spatial arbitrage
• Merger arbitrage
• Municipal bond arbitrage
• Convertible bond arbitrage
• Depository receipts
• Dual-listed companies
• Private to public equities
• Regulatory arbitrage
• Telecom arbitrage
• Statistical arbitrage
