| FI475-Project Study | Six Derivatives Mishaps | 2012/5/8 | Sumitomo (future contracts) Background: 1996‚ Sumitomo Corporation was one of the top copper market makers in the world. During the over 10 years under Hamanaka‚ who was a genius charged on allegations that he could manipulate the price of the metal‚ Sumitomo lost at least $1.8 billion as a result of what it said were unauthorized trades‚ which then lost a third of its value on world markets in less than two months. The affair was
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FINS1612 CAPITAL MARKETS & INSTITUTIONS SEMESTER 1 2009 COURSE NOTES Version 1.0.1 (15th June 2009) kaheiyeh.web.officelive.com Contents Contents Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign
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PRESENTATION DUE: 18 NOV 2014 Monitoring Yield Curve Adjustments As an analyst of a bond rating agency‚ you have been asked to interpret the implications of the recent shift in the yield curve. Six months ago‚ the yield curve exhibited a slight downward slope. Over the last six months‚ long-term yields declined while short-term yields remained the same. Analysts said that the shift was due to revised expectations of interest rates. a. Given the shift in the yield curve‚ does it appear that firms increased
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LECTURE 2 Debt exists of one of two broad types of claims on a business‚ Equity and Debt. That is ownership claims (or the right to any and all residual asset value after all prior claims are met) and prior ranking claims known as debt. Equity is typically a form of permanent capital in the capital framework of a company while debt is typically nonpermanent with a variety of forms. This course focuses on Dept with special emphasis on the Debt Capital Markets. A debt instrument is a document
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Exam Two: Chapters 10‚ 6‚ 12‚ and 7 Contract Between Bondholder & Issuer In addition to specifying a payment schedule‚ the bond *indenture‚ which is the document defining the contract between the bond issuer and the bondholder‚ also specifies a set of restrictions that protects the rights of the bondholders Such restrictions include provisions relating to collateral‚ sinking funds‚ dividend policy‚ and further borrowing. The issuing firm agrees to these so called protective covenants in order
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R. Preston McAfee‚ Price Discrimination‚ in 1 ISSUES IN COMPETITION LAW AND POLICY 465 (ABA Section of Antitrust Law 2008) Chapter 20 _________________________ PRICE DISCRIMINATION R. Preston McAfee* This chapter sets out the rationale for price discrimination and discusses the two major forms of price discrimination. It then considers the welfare effects and antitrust implications of price discrimination. 1. Introduction The Web site of computer manufacturer Dell asks prospective buyers
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rich national subsidiaries that can respond to local market needs or opportunities with localized products and strategies (Bartlett & Beamish‚ 2014‚ p. 113). For this reason‚ it is not very efficient like internationals and very far behind the curve when compared to global strategy. In addition‚ its inflexibility like an international to
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Chapter 1 Answers to End of Chapter Questions 1. Agency Problems of MNCs. a. Explain the agency problem of MNCs. ANSWER: The agency problem reflects a conflict of interests between decision-making managers and the owners of the MNC. Agency costs occur in an effort to assure that managers act in the best interest of the owners. b. Why might agency costs be larger for an MNC than for a purely domestic firm? ANSWER: The agency costs are normally larger for MNCs than purely domestic firms for the following
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------------------------------------------------- CHAPTER 24 ------------------------------------------------- Portfolio Theory‚ Asset Pricing Models‚ and Behavioral Finance Please see the preface for information on the AACSB letter indicators (F‚ M‚ etc.) on the subject lines. True/False Easy: (24.4) SML FN Answer: b EASY . The slope of the SML is determined by the value of beta. a. True
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A Complimentary Copy from 口 RENTI 巳 E F T Prenticc Hall HALL SOLUTIONS MANUAL AND STUDY GUIDE Fundamentals of Futures and Options Markets Sixth Edition John C.Hull Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University of Toronto Prentice Hall ‚ Upper Saddle River‚ NJ 07458 Project Manager ‚ Editorial: Mary Kate Mu红ay Project Manager ‚ Production: Carol Sarnet Buyer: Arn old Vila Copyright @ 2008 by Pearson
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