CHECK THESE SAMPLES OF Derivatives
Finance and Accounting Financial Services (Derivatives) Table of Contents Table of Contents 2 Inroduction 2 Bank and Companies Exposed to Losses 3 Risk of Derivative Contracts 4 Counterparty Credit Risk 4 Transparency Risk 5 Legal Risk 5 Credit Risk 5 Market Risk 6 Basis Risk 6 Benefits of Derivative Contracts 6 Conclusion 8 Reference 9 Inroduction A derivative contract is referred as a bilateral agreement which grants for payment to be made by one contracting party to the other....
6 Pages
(1500 words)
Essay
The paper "Derivatives and Foreign Exchange" investigates the financial exposure risks and types of derivative contracts.... The idea of Derivatives holds significance in the context of attractive financial products for two types of traders who are hedgers and speculators....
10 Pages
(2500 words)
Coursework
Derivatives and alternative investments Name Professor Date Question 1 Number of future bonds to be shorted = 50,000,000/ (122*100,000)= 409.... = 410 bond futures Question 2 The interest rate swap market is one of the most important fixed-income markets in the trading and hedging of interest rate risk....
13 Pages
(3250 words)
Coursework
Almost anything with a random outcome can have an option on it.... Note that by using the word anything, we are implying that the underlying does not even need to be an asset.... In this section, we shall discover the different types of options, identified by the nature of the underlying.... hellip; Our focus in this paper is on financial options, but it is important, nonetheless, to gain some awareness of other types of options.
Options on individual stocks, also called equity options, are among the most popular....
18 Pages
(4500 words)
Essay
According to Hu (1993), Derivatives are the contracts that allow or obligate the user/drawer of the contract to buy or sell the… Hu also explained that changes in the value of the assets also change the value of the said contract.... This underlying asset can be interest rates, exchange rates, stocks, commodities, goods, and so forth (Hu, Are the Risks of Derivatives Manageable?... s Are the Risks of Derivatives Manageable?... Derivatives are financial instruments (contracts/agreements) which become exercisable on the occurrence or non-occurrence of any specific event....
2 Pages
(500 words)
Essay
Derivatives are used to minimise the effect of such risks.... Though the negative event cannot be avoided, but the impact can be greatly reduced by hedging through Derivatives.... They are mainly of four types vis- a-vis futures, forwards Such types of Derivatives are used based on the type of risk exposure i.... Derivatives were used primarily to hedge risk, but over time people used it to make gains out of the price movements of the underlying assets....
7 Pages
(1750 words)
Assignment
This essay outlines the legal issues behind Derivatives and swaps.... hellip; The International Swaps and Derivatives Association, ISDA, was formed with a view to encourage the prudent global use of privately negotiated derivative agreements and this body has made it possible for participants to relatively easily enter into such agreements through the use of its standardised ISDA Master Agreement.... Whatever the motive for using Derivatives and swaps, it is important to be able to understand the legal aspects of the contracts related to Derivatives....
14 Pages
(3500 words)
Essay
The paper entitled 'China's Derivatives Market' presents the use of Derivatives which has been the center of extreme controversy ever since the US subprime mortgage crash in 2007.... Top-rated exotic Derivatives were quickly converted into toxic assets.... hellip; The absence of Derivatives in a modern market is unthinkable, however, because of their necessity in hedging currency and volatility risks, in order to attract investments by institutional funds....
8 Pages
(2000 words)
Research Paper