Derivatives Demystified A Step-by-Step Guide to Forwards, Futures, Swaps and Options phần 8 potx

... $100 Maturity: 1 year Exchange ratio: Each bond is mandatorily exchangeable into one share at maturity. Coupon rate: 0% A mandatorily exchangeable (ME) might be issued by a company that has a cross-holding of ... if, rather than investing in the CB, an investor used the money to buy XYZ shares in the cash market at $5 each. MANDATORILY CONVERTIBLES AND EXCHANGEABLES A mandatorily...

Ngày tải lên: 10/08/2014, 07:20

... investor would sell or buy shares to maintain a constant allocation. OTHER APPLICATIONS OF EQUITY SWAPS Equity swaps are extremely versatile tools and have many applications for companies, banks and ... hand, futures are guaranteed by the clearing house, whereas swaps are over-the-counter transactions and, as such, carry counterparty default risk. 70 Derivatives Demystified...

Ngày tải lên: 10/08/2014, 07:20

... swap to manage cash flows CHAPTER SUMMARY A forward contract is an agreement between two parties to deliver a commodity or a financial asset on a future date at a predetermined price. In many cases ... contract has to move by a certain amount before a variation margin call is triggered. Only the larger banks and financial institutions are clearing members of an exchange an...

Ngày tải lên: 10/08/2014, 07:20

... the Japanese yen and the Swiss franc. All deals are made against the US dollar. There is a range of expiration dates and both European- and American-style contracts are traded. If a contract is ... interest in call and put options as a means of gauging market sentiment. An excess of put options being traded may indicate that investors and speculators are bearish about the...

Ngày tải lên: 10/08/2014, 07:20

... value that will be calculated. Standard deviation is a measure of dispersion from an average value and is widely used in many practical applications, not just in finance and business. As an example, ... Option Valuation Concepts 131 IMPLIED VOLATILITY The advantage of using historical volatility to price an option is that (normally) the sample data are readily available and the metho...

Ngày tải lên: 10/08/2014, 07:20

... section as 6.01% p .a. Table A. 4 assumes that the FRA is sold at 6.01% p .a. , and the arbitrage profit disappears. FORWARD RATES AND INTEREST RATE SWAPS An interest rate swap (IRS) is an agreement ... bond Share 25 Figure 17.3 Capital gains/losses on a mandatorily exchangeable at maturity the bond for shares at maturity, using an exchange ratio formula that can produce a lower rat...

Ngày tải lên: 10/08/2014, 07:20

... on standard par interest rate swaps. Swap rate The fixed rate on an interest rate swap. Swaption An option to enter into an interest rate swap. A payer swaption is an option to pay fixed and receive ... into or exchanged for shares on or by a certain date. Margin call When a trader on a derivatives exchange receives a call to make an additional payment because of an advers...

Ngày tải lên: 10/08/2014, 07:20

... Northeast United States. For exa Vermont and West Virginia an amenable animal can be inspected and slaught Equivalent” state facility and the particular state. In Delaware, Ma inspection at a Talmadge-Aiken ... fr • Sire and Dam identifica • Immunizations, date and d • Parasite tests, da • Parasite treatment, date and dosage • Feed quantity and type • Injuries and illness...

Ngày tải lên: 21/02/2014, 01:20

... 26 CHAPTER 3: Saving as a group 29 Rotating Savings and Credit Association (ROSCA) 30 Accumulative Savings and Credit Association (ASCA) 38 Credit Union (Savings and Credit Cooperative) 48 Linking ... we launched a study to explore the socio-cultural factors influencing rural saving behaviour in Zambia. This was later expanded, with generous funding from the Netherlands in 19 98...

Ngày tải lên: 22/03/2014, 21:20

... professionals. It contains a variety of papers, articles, and other materials relating to invest- ment manager analysis across all asset classes, including: ■ Performance analysis ■ Risk analysis ■ Attribution ... each calculation and, more importantly, how to evaluate the re- sults. Each formula and analytical technique discussed in the book is broken down and explained in great...

Ngày tải lên: 08/05/2014, 10:12