Introduction to Derivative Financial Instruments: Bonds, Swaps, Options, and HedgingMcGraw Hill Professional, 2008 M03 2 - 400 pages
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Page 14
... commodities market would result in a huge profit because the market had soared. Taking advantage of price discrepancies in separate markets is the best example of benefit derived from insight. Another basic characteristic of ...
... commodities market would result in a huge profit because the market had soared. Taking advantage of price discrepancies in separate markets is the best example of benefit derived from insight. Another basic characteristic of ...
Page 29
... commodities, particularly rice, were traded in Japan. Instrument features that today are considered to be characteristic of modern derivatives exchanges emerged during the second half of the nineteenth century on Chicago's commodities ...
... commodities, particularly rice, were traded in Japan. Instrument features that today are considered to be characteristic of modern derivatives exchanges emerged during the second half of the nineteenth century on Chicago's commodities ...
Page 33
... commodity, security price, or index. The definition also specifies that a derivative instrument typically requires no initial investment, or one that is smaller than would be needed for a clas- sical contract with similar response to ...
... commodity, security price, or index. The definition also specifies that a derivative instrument typically requires no initial investment, or one that is smaller than would be needed for a clas- sical contract with similar response to ...
Page 34
... commodity), demand and time deposits, commercial paper, leases, accounts, notes, loans receivable and payable, rights and obligations with insurance risk under insurance contracts, employers' rights and obligations under pension ...
... commodity), demand and time deposits, commercial paper, leases, accounts, notes, loans receivable and payable, rights and obligations with insurance risk under insurance contracts, employers' rights and obligations under pension ...
Page 36
... commodity price, share price, interest rate, currency exchange rate, index of prices, or something else. It may also be a variable applied to the notional principal amount to determine the cash flows or other exchange of assets required ...
... commodity price, share price, interest rate, currency exchange rate, index of prices, or something else. It may also be a variable applied to the notional principal amount to determine the cash flows or other exchange of assets required ...
Contents
Beware of Assumed Exposure and Illiquidity | 95 |
Options | 147 |
Risk Control for Options | 225 |
Futures Forwards and Swaps | 269 |
Index | 349 |
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Common terms and phrases
accounting agreements amount assets associated assumed banks basis bonds buyer capital cash Chapter commodity companies complex contracts cost counterparty credit risk currency deal debt default delta derivatives effect equity example exchange exercise expected expiration exposure fact factors Figure financial instruments fixed foreign forward futures gain given hedge higher holder impact important increase instance institutions interest interest rate International investment investors involve issue less leveraged liabilities liquidity loans losses major maturity means measurement ments notional obligations option parties payments percent period portfolio position practice premium principal profit protection purchase reasons reference regulators reporting requirements result securities sell seller short specified spread standard strike price structured swaps tion trading transactions types underlying volatility writer yield
Popular passages
Page 24 - For want of a nail, the shoe was lost, For want of a shoe, the horse was lost, For want of a horse, the rider was lost, For want of a rider, the battle was lost, For want of a battle, the kingdom was lost, And all for the want of a horseshoe nail.
Page 15 - An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset, at a specific price, on or before a certain date.
Page 91 - ... resulting designation. • For a derivative designated as a hedge of the exposure to changes in the fair value of a recognized asset or liability or a firm commitment (referred to as a fair value hedge), the gain or loss...
Page 156 - Option: Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.
Page 39 - ... makes a profit. The lower the spot price, the more is the profit he makes. If the spot price of the underlying is higher than the strike price, he lets his option expire unexercised.
Page 143 - ... not affect earnings. Our proposed standard provides optional hedge accounting for many derivatives. Gains or losses on derivatives that qualify for hedge accounting, that is that are effective and do not have a speculative aspect to them, should have little or no net effect on a company's earnings. They will be offset by comparable losses or gains on the thing that is being hedged, and the result is little or no volatility in earnings.
Page 42 - An options contract bestows upon its owner the right, but not the obligation, to buy or sell the underlying futures contract at a specified time and "strike
Page 287 - Forward Rate Agreement (FRA): A contract in which two counterparties agree on the interest rate to be paid on a notional deposit of specified maturity at a specific future time.
Page 66 - Testimony to the US House of Representatives Committee on Banking, Finance, and Urban Affairs on...