summary – Enron Corporation’s Weather Derivatives Steve Haik‚ Dan Sleker and Bas van Bellegem – March 2003 Background In October Mary Watts‚ CFO of Pacific Northwest Electric (PNW) reviewed the forward plan for PNW’s 200-2001 season. PNW’s has been experiencing nearly no EPS growth since 1995 due to deregulation and warmer-than-average winter climate. The stock price had suffered accordingly‚ but there maybe a way to hedge the weather risk via a new “weather derivative” being proposed by Enron’s Mike
Premium Contract Derivative Insurance
International Economics DERIVATIVE MARKETS FUTURES‚ FORWARDS‚ OPTIONS‚ SWAPS‚ CAPS AND FLOOR MARKETS Prepared by: Zagorskaya Ksenia 1. OVERVIEW OF DERIVATIVE MARKET Derivatives are financial instruments whose value is derived from the value of something else. They generally take the form of contracts under which the parties agree to payments between them based upon the value of an underlying asset or other data at a particular point in time. The main types of derivatives are futures‚ forwards
Premium Futures contract Derivative Derivatives
Workbook for NISM-Series-VIII: Equity Derivatives Certification Examination National Institute of Securities Markets www.nism.ac.in 1 This workbook has been developed to assist candidates in preparing for the National Institute of Securities Markets (NISM) NISM-Series-VIII: Equity Derivatives Certification Examination (NISM-Series-VIII: ED Examination). Workbook Version: April 2014 Published by: National Institute of Securities Markets © National Institute of Securities Markets‚ 2012 Plot 82
Premium Futures contract Derivatives
FBE 459 – Financial Derivatives Spring 2013 Scott Joslin University of Southern California Marshall School of Business Course Description This course intends to be an introduction to financial derivatives‚ namely options‚ futures and swaps. Our main goal will be to focus on the uses of derivatives for hedging and speculation and to understand risk neutral pricing of derivatives. The emphasis of the course will be on conceptual issues as opposed to the institutional aspects (although the basic
Premium Risk Investment Derivative
------------------------------------------------- INTERIM REPORT ON ------------------------------------------------- ANALYTICAL STUDY OF DERIVATIVES MARKET ------------------------------------------------- (Shweta Malage) ABOUT DERIVATIVES: * According to dictionary‚ derivative means ‘something which is derived from another source’. * Therefore‚ derivative is not primary‚ and hence not independent. * In financial terms‚ derivative is a product whose value is derived from the value of one or more basic variables. These basic
Premium Futures contract Derivatives Derivative
International Swaps & Derivatives Assn. recently estimated the worldwide market at $ 105 trillion. The Office of the Comptroller of the Currency (OCC) says U.S. commercial banks held $ 56 trillion of derivatives at the end of 2002”‚ and by comparison the GDP of the US was estimated to 10.4 trillion the same year. The world’s largest financial market today is therefore without doubt the derivative market. Derivatives have come into existence because nearly every business has its risks. Derivatives are used
Premium Derivative Futures contract Derivatives
EUROPEAN WEATHER DERIVATIVES This paper concentrates on where the future of the weather derivatives market may lie‚ where the new applications may be situated and what will be the main drivers of the market size. We realise that some of the applications are not currently available or commercially viable at present but take the view that‚ if demand is sufficient‚ they will become available given time. In fact‚ one of the likely drivers of demand is the rate of change in the European climate. To this
Premium Weather Global warming Derivatives
Segment 1 pace chart Week 1 01.00 Introduction and Pretest 01.01 Numerical Operations 01.02 Algebraic Expressions 01.03 Units and Graphs 01.04 Module One Quiz Week 2 01.05 Descriptive Modeling and Accuracy 01.06 Translations 01.07 Algebraic Properties and Equations 01.08 Module One Review and Practice Test Week 3 01.09 Discussion-Based Assessment 01.10 Collaboration Component 01.11 Module One Test 02.00 Module Two Pretest Week 4 02.01 One-Variable Equations 02
Premium Derivative Polynomial Exponential function
Equity In accounting and finance‚ equity is the residual value or interest of the most junior class of investors in assets‚ after all liabilities are paid; if liability exceeds assets‚ negative equity exists. In an accounting context‚ shareholders’ equity (or stockholders’ equity‚ shareholders’ funds‚ shareholders’ capital or similar terms) represents the remaining interest in the assets of a company‚ spread among individual shareholders of common or preferred stock; a negative shareholders’ equity
Premium Stock market Balance sheet Stock
(seminar---------------10) 21 Class preparation (seminar--------------11) 23 Class preparation (seminar--1) 1 Why and how did the law of equity develop? 2 Why did the conflict between common law and equity arise and how was it resolved? 3 Explain the following maxims by reference to case law: He who comes to equity must come with clean hands Where the equities are equal‚ the first in time prevails Equity deems as done that which ouight to be done 4 Identify the equitable maxims involved in the following: Bill and Ben
Free Trust law Trustee