FINANCIAL DERIVATIVES “Risk in Investing in Derivatives” Submitted By: Zeeshan Saeed (9961) Hashim Mamsa (10138) Fawaz Shaikh (11276) Ali Kazi (10537) Submitted To: Mrs. Shazia Farooq TABLE OF CONTENTS INTRODUCTION_______________________________________________________________________ 3 Types of Risk:_________________________________________________________________________ 4 I. Market Risk:…………………………………………………………………………………………………………………………………………. 4 II. Default risk…………………………………………………………………………………………………………………………………………
Premium Risk Market risk Derivative
Marketing Theory Commodity School 01.11.2012 [Şirket adını yazın] Bahcesehir University‚ MA Marketing What is commodity school and what are strengths and weaknesses of that thought? Marketing theory has been discussed over years. Many theorists had tried to explain marketing thought since it was a separate field apart from economics. In order to indicate progress of the theory; Sheth‚ Gardner and Garret in the book of Marketing Theory Evolution and Evaluation compiled all schools of marketing
Premium Marketing
CHAPTER 1 INTRODUCTION Derivatives Securities A derivative security is a security whose value depends on the value of together more basic underlying variable. These are also known as contingent claims. Derivatives securities have been very successful in innovation in capital markets. The emergence of the market for derivative products most notably forwards‚ futures and options can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties
Premium Futures contract Derivative Option
Project Report on Derivatives | Introduction to Futures & Options | Faculty: Dr. Sharif N. Ahkam 1.0INTRODUCTION In recent times the Derivative markets have gained importance in terms of their vital role in the economy. The purpose of this report to get an orientation to the derivatives and develop a basic understanding of what it is and how does it work. Derivatives are financial instruments‚ which derive their value from an underlying asset. The underlying
Premium Futures contract Call option Option
travellers to West Africa (Pietz‚ 1993). The theory of commodity fetishism Commodity fetishism is the process of ascribing unrealistic qualities to an object‚ whereby the human labour required making that object is lost once the object is associated with a monetary value for exchange. The object’s value appears to come from the commodity‚ rather than the human labour that produced it. Under capitalism‚ once the object emerges as a commodity that has been assigned a monetary value for equivalent
Premium Das Kapital Meaning of life
Unit 1 Case Study: 3. The dilemma I face now is to inform all the investors of the inaccurate information the accountant provided and that in fact‚ the team is losing money. The biggest problem is that no one should be receiving a check for their investments. The team is surprisingly operating with a loss yet investors are getting paid. The season ticket revenue does not provide reliable information to an outsider because revenue would not be placed until 2009. The $100‚000 advertising revenue
Premium Money Revenue Profit
Case Analysis Actually‚ we can rank the projects by simply inspecting the cash flows. However‚ it is not a good method to rank the projects. In order to ensure that the investment projects selected have the best chance of increasing the value of the firm‚ we need tools to evaluate the merits of individual projects and to rank competing investments. In this case‚ our group using some tools which are Payback Period‚ Net Present Value (NPV) ‚ Profitability Index (PI)‚ and Internal Rate of Return
Premium Net present value
assets? If so‚ how‚ if not‚ why not? On the one hand‚ the circumstances of the sale make me less willing to buy. In particular‚ both Universal and the federal government think that American’s acquisition creates antitrust issues. If this is the case‚ American could use its market power to change the nature of the market and make Dixon’s new plant unprofitable by setting lower prices for sodium chlorate in its other plants. On the other hand‚ the circumstances make me more willing to buy the assets
Premium Investment Capital expenditure Net present value
Accounting for Derivative Instruments Page 1 of 22 Appendix 17A Accounting for Derivative Instruments Until the early 1970s‚ most financial managers worked in a cozy‚ if unthrilling‚ world. Since then‚ constant change caused by volatile markets‚ new technology‚ and deregulation has increased the risks to businesses. In response‚ the financial community developed products to manage these risks. These products—called derivative financial instruments or simply‚ derivatives—are useful for managing
Premium Derivative Futures contract Option
Chevron’s derivatives are not material to its financial position. In 2012‚ Chevron recognized a total income in derivative of $3 million from a $20 million of net gain on hedge transaction‚ a net loss from reclassification of $14 million and a payment of $3 million on derivative income taxes. Chevron’s major derivative activities are commodity instruments that intend to manage financial risk posed by physical transactions. Chevron first discussed its financial and derivative instruments in FS-14
Premium Risk Finance Income statement