Gaz De France 1&2) In my opinion‚ Mr. Reboul did an excellent job with liability management so far. He and his staff successfully hedged GDF’s foreign debt and in that process were actually able to made profits which contributed to net income. Currency swaps allow companies to exploit the global capital markets more efficiently. They are an integral arbitrage link between the interest rates of different developed countries. Companies have to come up with the funds to deliver the notional at
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Private Healthcare Insurance Nowadays‚ healthcare issues become a big attention to the people in the world. People always want to be healthy‚ while in the meantime‚ the risk to be suffered by the diseases are high. By this‚ illness can come anytime and anywhere. To anticipate this‚ some people rely on healthcare insurance. Although healthcare insurance has some benefits‚ it has disadvantage in some conditions. However‚ people have to have some consideration before they apply the healthcare insurance
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1 A call option price will increase‚ all else equal‚ when: a. the price of the underlying asset decreases b. the interest rates in the market decreases c. the time to maturity decreases d. the exercise price increases e. the volatility of the return of the underlying asset increases Answer E 2 The type(s) of risk that is (are) generally hedged with derivative contracts include all of the following except: a. commodity price risk b. foreign exchange risk c. interest rate risk d. property
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17p To purchase the case‚ please visit: http://hbr.org/product/pine-street-capital/an/201071-PDF-ENG Due date: December 05‚ 2013 Questions: 1- What risks does PSC face? How has it hedged these risks historically? Should it continue to hedge these risks? - Market neutral fund – fund hedged out all market risk - In the past‚ they hedged this out by short-selling shares of a market index - Due to the unprecedented volatility seen in the markets over the past several months‚ considering
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Commodities Futures Trading in India Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares‚ bonds and real estate‚ commodities is the best option. What is commodity trading? It’s an age-old phenomenon. Modern markets came up in the late 18th century‚ when farming began to be modernised. Though the trade’s mechanisms have changed‚ the basics are still the same
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Malaysia Airline should reduce the price of ticket to attract more passengers. Although the profit will be reduce‚ but the increase of the number of passengers will cover it back. In long term‚ it will bring more benefit to the company. Malaysia Airline also needs to have more promotion to attract the low income of passengers. For example‚ promote special ticket for a group of students or for family to travel during the school holiday. This is because during holiday‚ many of the students and family
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Amaranth was a hedge fund based out of Greenwich Connecticut started by Nicholas Maounis in 2000. At its peak‚ Amaranth had 9 billion dollars in assets and employed 115 employees. Amaranth began by trading convertible bonds and made a lot of profit through convertible arbitrage by simultaneously buying and selling convertible securities and common stock to capture gains from a difference in prices. Because convertible securities were often mispriced‚ this trade was very popular and as the rest of
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the fund. The most well know strategy which hedge fund managers or practitioners undertake was “market neutral arbitrage”‚ thus‚ from this particular trading strategy‚ of course what they are doing is not like what the name suggested “hedging”‚ instead‚ hedge fund participants are trying to speculate from every financial markets. More specific‚ the trading strategy indicates that it take a long position in those securities which was viewed by hedge fund managers as under priced securities or illiquid
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3G and TCI are the hedge fund that intended to take over certain company like CSX. These kind of hedge fund employ certain strategies that are different from other Hedge fund in the VW cases‚ they write options speculating the price of Volkswagen goes down‚ while earn the profit by option premium. they are simply the profit driven hedge fund In 3G and TCI case‚ hedge funds are exposed to 1. The risk of volatility of the CSX return because what 3G and TCI received from investment bank are
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Pine Street Capital Discussion and Analysis 1 PINE STREET CAPITAL – WHAT RISK TO HEDGE & WHAT TO BEAR? Hedge: market related risks 1. Currently managing a market neutral fund ($32 AUM) In the past the market risk was hedged by shorting or short-selling representative shares of the market index In the past the market riskunder was The alternative hedged by shorting hedging the consideration was or shortselling representativehelp of put market risk with the shares of the market the market
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