steering the ship managing your project to success

... from producers to consumers The more places to buy and the easier it is made to buy it, the better for the business of company In my opinion, the component that decides to the success of a marketing ... they want to buy it - How much are the customers willing to pay for this product? - How can business persuade the customers buy their product instead of their competitors’? To this, the first ... services to satisfy the need or demand of the customers Designing and Producing a product depend on the aims of product, the benefit that the company expect, the position that they plan it within the...

Ngày tải lên: 13/12/2013, 14:15

... (‘co-financing’) of the total eligible expenditure of the project The Agency has the right to audit all project expenditure and not only the part financed by EU funds At the beginning of the project, grant ... Verify the amount of actual total expenditure and the actual total revenue They need to correspond with the amounts presented in the annual accounts and fall into the categories set out in the estimated ... specific project This has many advantages: • It allows the funds to be traced clearly from their source to their use • It allows project funds to be separated from other funds and makes it easy to...

Ngày tải lên: 15/03/2014, 20:20

... constructive to compare them OO The call buyer has the right to buy the underlying, consequently the call seller may have the obligation to sell the underlying OO The put buyer has the right to sell the ... has the use of the cash that he would otherwise use to purchase the stock The cost of a call is therefore increased by the cost of carry on the stock via the strike price of the option, until the ... period The put buyer has the right, but not the obligation, to sell the underlying The put seller has the obligation to buy the underlying at the put buyer’s discretion These are the terms of the...

Ngày tải lên: 20/06/2014, 20:20

... options markets: the historical volatility of the underlying, and the implied volatility of the options on the underlying Historical volatility The historical volatility describes the range of price ... a change in the underlying OO the passage of time OO a change in the implied volatility Options theory is able to quantify exposure to these variables The terms that are applied to the calculations ... into the pricing model, and if we delete the former historical volatility, the model substitutes another volatility number, the implied volatility of the option This implied volatility can then...

Ngày tải lên: 20/06/2014, 20:20

... 3.10 for the June 113 put, for a total debit of 0.50 Your short put then effectively finances the purchase of your long put, and minimises your exposure to the Greeks The trade-off is that your downside ... two If the underlying suddenly moves to the short strike that was formerly furthest out-of -the- money, the first solution is to buy back that strike The second solution is to buy the out-of -the- money ... move to the short strike, with no sign of a retracement, the spread becomes subject to the delta and vega risk of the extra short option It is then advisable to cover the risk of this option There...

Ngày tải lên: 20/06/2014, 20:20

... difficult to assess for the use of an out-of -the- money call butterfly, then you can increase the range of the spread by shifting the short call spread to the next two higher strikes that are out of the ... level is the strike price of the higher put minus the total income from the spread, or 340 – 5.5 = 334.5 The maximum downside loss is the difference between put strikes minus the income from the spread, ... worth The profit on the long 95–100 call spread pairs off against the loss on the short 100–105 call spread The butterfly is then worthless, and the cost of the butterfly is taken as a loss There...

Ngày tải lên: 20/06/2014, 20:20

... In order to cover their risk, the market-makers need to widen their bid–ask spreads Under these circumstances, to ask the market-makers to tighten their spreads is to ask them to put their jobs ... hedge the positions that retail customers want them to assume They may be forced to carry the positions in their inventory for periods of weeks or months, and during this time they are exposed to ... analysis to note the support level of the stock or index If I think that the stock is more likely to break support than the market is indicating, I buy puts below the level of support Not only are these...

Ngày tải lên: 20/06/2014, 20:20

... dividends The futures contract simply expires to the current cash value of the index There, the holder of the long futures contract pays the cash value of all the stocks in the index The holder of the ... for the put, then you have sold the synthetic future at 1140.70 Here, you have the obligation to sell the future above 1140, and the right to sell the future below 1140 The profit/loss of the ... expiration, there may be a large amount of dividends payable in a stock or stock index Then the dividend outweighs the interest amount and the future trades at a discount to the index Once the dividend...

Ngày tải lên: 20/06/2014, 20:20

... certain – that they increased the volume of their derivatives exposure in order to maintain their profit level Fair enough But they also increased their leverage They tried to apply the manufacturing ... model to derivatives A disaster waiting to happen In the case of the oil company, it appears that in order to cut costs, they outsourced to a well drilling firm that gave them the cheapest bid The ... positions our books and to avoid pin risk But then again, between market-makers the arbs try to pay 19.75 for the above box, and they try to sell it at 20.25 They often this by trading the components...

Ngày tải lên: 20/06/2014, 20:20

... of the stock is 0.50 per cent, then no more than £0.40 must be paid for the synthetic over the bid price of the stock Bearing in mind that the options contract trades in multiples of 0.25, the ... option is the right to buy the underlying asset at a specified price for a specified time period The call buyer has the right, but not the obligation, to buy the underlying The call seller has the ... increase, and the vega will decrease (c) If the implied decreases, then the vega of the December 52.50 call will decrease (d) If the implied decreases, then the gamma and delta of the January 47.50...

Ngày tải lên: 20/06/2014, 20:20

... interest in order to help you make trading decisions They all are, or will be, classics The list is limited because your time is limited, and your priority is to take the shortest route to a more advanced ... historical volatility of the underlying through expiration Volatility skew A pattern of implied volatility variations exhibited by in -the- money and out-of -the- money options 307 Further reading There ... Further reading Books about trading The Gambler by F.M Dostoyevsky (various editions) To know the difference between trading and gambling Reminiscences of a Stock Operator (2004) by William J.O’Neil...

Ngày tải lên: 20/06/2014, 20:20

... expiration, the stock closes below the put strike, or 45, you will be assigned on the short put, and you will be obligated to buy the stock at the strike price, or 45 The cost of your stock purchase ... have the right to buy the shares at 350; also the right to sell the shares at 350 At expiry, the upside break-even level is the strike price plus the cost of the spread, or 350 + 21.50 = 371.50 The ... profit one to one with the decline of the stock, or you hedge your investment one to one On the upside, your spread behaves like a short 60 call for which you have paid 0.96 If the stock closes...

Ngày tải lên: 21/06/2014, 00:20

... difficult to assess for the use of an out-of -the- money call butterfly, then you can increase the range of the spread by shifting the short call spread to the next two higher strikes that are out of the ... level is the strike price of the higher put minus the total income from the spread, or 340 – 5.5 = 334.5 The maximum downside loss is the difference between put strikes minus the income from the spread, ... worth The profit on the long 95–100 call spread pairs off against the loss on the short 100–105 call spread The butterfly is then worthless, and the cost of the butterfly is taken as a loss There...

Ngày tải lên: 21/06/2014, 00:20

... that the stock’s new level is the top for the time being Your strategy is to write calls for the next two expirations, and you expect to profit in the end With Coca-Cola at 57.67, the value of the ... break-even level for your position is the price at which the call income equals the decline in the stock price This is calculated as the price of the stock minus the income from the call, or 52.67 ... for you How to manage the risk of the covered write The covered write is best suited to long-term stock-holders who can tolerate a decline in the stock price below the current price There are two...

Ngày tải lên: 21/06/2014, 00:20

... the out-of -the- money and the in -the- money options increase As the underlying increases its range, these options are more likely to become at -the- money Their vegas approach that of the atthe-money ... which option to buy or sell, it is important to know the time decay of the option as a percentage of the option’s value You 16  The costs of the Greeks can then better choose the strike to trade ... 11.50 is the smaller loss to take if your investment fails to succeed O The second approach is to limit the amount you wish to invest For example, If you have e88 to invest (times the multiplier)...

Ngày tải lên: 21/06/2014, 00:20

... In order to cover their risk, the market-makers need to widen their bid–ask spreads Under these circumstances, to ask the market-makers to tighten their spreads is to ask them to put their jobs ... hedge the positions that retail customers want them to assume They may be forced to carry the positions in their inventory for periods of weeks or months, and during this time they are exposed to ... analysis to note the support level of the stock or index If I think that the stock is more likely to break support than the market is indicating, I buy puts below the level of support Not only are these...

Ngày tải lên: 21/06/2014, 00:20

... dividends The futures contract simply expires to the current cash value of the index There, the holder of the long futures contract pays the cash value of all the stocks in the index The holder of the ... for the put, then you have sold the synthetic future at 1140.70 Here, you have the obligation to sell the future above 1140, and the right to sell the future below 1140 The profit/loss of the ... expiration, there may be a large amount of dividends payable in a stock or stock index Then the dividend outweighs the interest amount and the future trades at a discount to the index Once the dividend...

Ngày tải lên: 21/06/2014, 00:20

... certain – that they increased the volume of their derivatives exposure in order to maintain their profit level Fair enough But they also increased their leverage They tried to apply the manufacturing ... model to derivatives A disaster waiting to happen In the case of the oil company, it appears that in order to cut costs, they outsourced to a well drilling firm that gave them the cheapest bid The ... positions our books and to avoid pin risk But then again, between market-makers the arbs try to pay 19.75 for the above box, and they try to sell it at 20.25 They often this by trading the components...

Ngày tải lên: 21/06/2014, 00:20

... consequences, then the volatility will revert to the 30-day The implied has increased (to 8.25 per cent), which indicates that the nearterm historical volatility is expected to increase The options ... of the index at the opening, then compare it to the implied volatility of the options.) Chapter answers The historical volatility is an average of a set of daily annualised volatilities of the ... expiration You want to give your assessment a try, but you don’t want to risk too much At the CBOE the following SPX options on the S&P 500 are trading at the following prices The contract multiplier...

Ngày tải lên: 21/06/2014, 00:20

... of the stock is 0.50 per cent, then no more than £0.40 must be paid for the synthetic over the bid price of the stock Bearing in mind that the options contract trades in multiples of 0.25, the ... option is the right to buy the underlying asset at a specified price for a specified time period The call buyer has the right, but not the obligation, to buy the underlying The call seller has the ... increase, and the vega will decrease (c) If the implied decreases, then the vega of the December 52.50 call will decrease (d) If the implied decreases, then the gamma and delta of the January 47.50...

Ngày tải lên: 21/06/2014, 00:20