MFIN6003 Derivative Securities Dr. Huiyan Qiu End-of-chapter Questions for Practice (with Answers) Following is a list of selected end-of-chapter questions for practice from McDonald’s Derivatives Markets. For students who do not have a copy of the McDonald’s book‚ be aware that a copy of the book is reserved at the main library of the University of Hong Kong for you to borrow for short period of time. Answers provided are for your reference only. It is complied directly from the solution
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Econ 724-01 Financial Derivatives I Final Examination Instructions: 1. The test is open-book and open-notes. 2. Time allowed: 4 hours 1. Refer to the data in Table 1. a) Lau Spring 2011 Suppose you long 10 June 2011 British Pound contracts on April 26‚ 2011 (T) (at the settlement price) and you close your position on April 27‚ 2011 (W) (at the settlement price)‚ how much will you make/lose? Suppose you long 10 June 2011 British Pound contracts on April 27‚ 2011 (W) at the open and you close
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Solution to Derivatives Markets: for Exam FM Yufeng Guo June 24‚ 2007 www.guo.coursehost.com c °Yufeng Guo ii Contents Introduction 1 Introduction to derivatives 2 Introduction to forwards and options vii 1 7 29 79 129 141 3 Insurance‚ collars‚ and other strategies 4 Introduction to risk management 5 Financial forwards and futures 8 Swaps iii CONTENTS CONTENTS www.guo.coursehost.com c °Yufeng Guo iv Preface This is Guo’s solution to Derivatives Markets (2nd edition ISBN 0-321-28030X)
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thank GOD almighty for giving us strength to complete this project. Introduction A derivative is a financial contract which derives its value from the performance of another entity such as an asset‚ index‚ or interest rate‚ called the "underlying". Derivatives are one of the three main categories of financial instruments‚ the other two being equities (i.e. stocks) and debt (i.e. bonds and mortgages). Derivatives include a variety of financial contracts‚ including futures‚ forwards‚ swaps‚ options
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Derivatives in Financial Market Development Rangarajan K. Sundaram New York University (contact: rsundara@stern.nyu.edu) (contact: ) February 2013 Derivatives in Financial Market Development Rangarajan K. Sundaram Stern School of Business‚ New York University http://pages.stern.nyu.edu/ rsundara 13 September 2012 Contents Executive Summary ii 1 Introduction 2 2 The World Derivatives Market 2 2.1 Basic Derivative Instruments . . . . . . . . . . . . . . .
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www.edupristine.com Derivatives- I Mapping to Curriculum • Reading 60: Derivative Markets and Instruments • Reading 61: Forward Markets and Contracts • Reading 62: Future Markets and Contracts Expect around 6 questions in the exam from today’s lecture © Neev Knowledge Management – Pristine 2 www.edupristine.com Key Concepts • Difference Between OTC And Exchange Traded Contracts • Payoffs of Futures and Forwards • FRA‘s • Margins • Types of Futures © Neev Knowledge Management
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BASICS OF DERIVATIVES © Copyright 2002 India Infoline Ltd. All rights reserved. Regd. Off: 24‚ Nirlon Complex‚ Off W E Highway‚ Goregaon(E) Mumbai-400 063. Tel.: +(91 22) 685 0101/0505 Fax: 685 0585 BASICS OF DERIVATIVES CONTENTS FOREWORD ...................................................................................................................... 3 1.INTRODUCTION.......................................................................................................... 5 2. FUTURES
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Contents 1 Introduction to derivatives 1.1 Derivatives defined . . . . . . . . . . . . . . . . 1.2 Products‚ participants and functions . . . . . . . 1.3 Derivatives markets . . . . . . . . . . . . . . . . 1.3.1 Spot versus forward transaction . . . . . 1.3.2 Exchange traded versus OTC derivatives . 1.3.3 Some commonly used derivatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Chapter 10* Derivatives – The Ultimate Financial Innovation Viral Acharya‚ Menachem Brenner‚ Robert Engle‚ Anthony Lynch and Matthew Richardson I. General Background and Cost-Benefit Analysis of Derivatives Derivatives are financial contracts whose value is derived from some underlying asset. These assets can include equities and equity indices‚ bonds‚ loans‚ interest rates‚ exchange rates‚ commodities‚ residential and commercial mortgages‚ and even catastrophes like earthquakes and hurricanes
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Financial Derivatives DERIVATIVE SECURITY: A derivative security is a security whose value is contingent on the value of other more basic underlying variables. Hence derivatives are also known as contingent claims. Very often the variables underlying derivatives securities are the prices of traded securities. For example‚ stock option. Futures and Options ⇒⇒⇒⇒⇒⇒ actively traded on the many different exchanges. Forward Contracts‚ Swaps ⇒⇒⇒⇒⇒ traded outside of exchanges by financial Institutions
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