Do you Know? • What is Derivative Market? • What is Hedging? • What is OTC? • What is Exotic Option? Parisian Option Passport option Rainbow option Russian Option Shout Option Spread Option Parisian Option The pay off a standard European option only depends on the price of the underlying asset at the maturity date Passport option A Passport option grants its holder the right to engage in short/long trading strategy of his own choice A passport is a new contingent
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COOLING TOWER INTRODUCTION: Cooling towers are a very important part of many chemical plants. The primary task of a cooling tower is to reject heat into the atmosphere. They represent a relatively inexpensive and dependable means of removing low-grade heat from cooling water. The make-up water source is used to replenish water lost to evaporation. Hot water from heat exchangers is sent to the cooling tower. The water exits the cooling tower and is sent back to the exchangers or to other units
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Option Valuation Chapter 21 Intrinsic and Time Value intrinsic value of in-the-money options = the payoff that could be obtained from the immediate exercise of the option for a call option: stock price – exercise price for a put option: exercise price – stock price the intrinsic value for out-the-money or at-themoney options is equal to 0 time value of an option = difference between actual call price and intrinsic value as time approaches expiration date‚ time value goes to zero 21-2
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following are always positively related to the price of a European call option on a stock? c. The volatility 5. When we talked about Vega hedging‚ if a portfolio has 1000 shares of SPY and 10 contracts of at-the-money December 2013 put option on SPY (and nothing else in the portfolio)‚ is the portfolio vega neutral? c. No‚ the portfolio can never be vega neutral. 6. Which of the following is not true? a. When a CBOE option on IBM is exercised‚ IBM issues more stock 7. Which of the following
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the exchange risk associated with the award payment being dispersed in British Pounds (GBP). He originally considered a forward contract or a spot contract‚ but is now investigating how currency options could help hedge against uncertain foreign exchange exposure. The CFO needs to decide whether or not options contracts might provide some benefit to hedge the currency risk. As of 1/14/86‚ Dozier has received a 10% deposit of the total contract value of £1‚175‚000.00. At the 1/13/86 exchange rate
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Cooling towers are a very important part of many chemical plants. They represent a relatively inexpensive and dependable means of removing low grade heat from cooling water. The make-up water source is used to replenish water lost to evaporation. Hot water from heat exchangers is sent to the cooling tower. The water exits the cooling tower and is sent back to the exchangers or to other units for further cooling. [pic] Types of Cooling Towers |[pic]
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Homage to the Symbolism of the Eiffel Tower through Color French writer Guy de Maupassant would eat lunch at the Eiffel Tower’s restaurant out of pure necessity‚ because as he often remarked‚ “it’s the only place in Paris where I don’t have to see [the Eiffel Tower]” (Barthes 3). Wherever you are in Paris‚ whatever the weather‚ the Tower is always there; the only spot in Paris blind to the Tower is the Tower itself. The Eiffel Tower is constantly seeing all of Paris‚ and in return‚ being seen by
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Petronas Towers‚ also known as Petronas Twin Towers‚ are twin buildings situated in Kuala Lumpur‚ Malaysia‚ on the site of city’s race track. Of the two building‚ the one named Tower 1 was built by Hazama Corporation‚ while the other‚ known as Tower 2‚ was constructed by Samsung Engineering & Construction. The construction work on Petronas Towers was completed in 1998 and they were opened in August 1999. At the time of their completion‚ the twin buildings were the tallest buildings in the world and
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contract‚ the derivatives are settled at a future date. Role of Financial Derivatives. We can classify financial derivatives based on different parameters. The most common are: 1. Derivatives according to the type of contract involved: a. Options. b. Forwards. c. Contracts for difference. d. SWAPS. 2.
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Bitexco Financial Tower is a skyscraper in Ho Chi Minh City‚ Vietnam‚ owned by Bitexco Group‚ a Vietnamese company. With 68 floors above ground and three basements‚ the building has a height of 262.5 metres (861 ft)‚ making it the 124th tallest building in the world. The tower was made by the French company AREP and architects J.M. Duthilleul‚ E. Tricaud and Carlos Zapata. World renowned Ecuadorian architect Carlos Zapata‚ the creative mastermind behind Bitexco Financial Tower‚ drew inspiration for
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