PDF-DERIVATIVE INSTRUMENTS RISK STATEMENT FORM Warning Definitions Exchange Intermediary Institution

2 3 4 brPage 4br 5 6 7 8 9 10 11 12 13 14 brPage 5br 15 16 17. Risk Management. 730g81. Linköpings. University. 1. What is a Derivative?. A derivative is an instrument whose value depends on, or . is derived from, the value of another asset. .. Examples: futures, forwards, swaps, options. Presented By. Safwat Khalid. Session Objective. Understand characteristics of different types known derivative tools and its application. How derivative instrument can be an effective tool to manage risk and enhance our investment portfolio returns. Chapter 3. 1. Options, Futures, and Other Derivatives, 7th Edition, Copyright © John C. Hull 2008. Hedge : . A trade designed to reduce risk.. Many . of the participants in futures markets are hedgers. Their aim is to use futures markets to reduce a particular risk that they face.. Connecting business and education . through high-quality, age-appropriate, . work-based learning opportunities. Introduction. IA Intermediary Co-Chairs:. Erin Swancutt. Laurie Worden. Dept. of Education . 16.. 1. 16.. 2. The Goals of Chapter 16. Introduce . mechanics of futures options. Properties of futures options. Pricing futures options using binomial trees. Pricing futures options with Black’s . 2. A. Forward vs. Futures Markets. 1. Forward contracting involves a contract initiated at one time and performance in accordance with the terms of the contract occurring at a subsequent time. . Example: A highly prized St. Bernard has just given birth to a litter of pups. A buyer agrees to buy one pup for $400. The exchange cannot take place for 6 weeks. The buyer and seller agree to exchange (sell) the pup in 6 weeks for $400. This is a forward contract; both parties are obligated to go through with the deal.. Options on Stock Indices and Currencies. Chapter 15. 1. Fundamentals of Futures and Options Markets, 9th Ed, Ch 15, Copyright © John C. Hull 2016. Index Options. The most popular indices underlying options in the U.S. are. Ch. 14, Copyright © John C. Hull 2016. Employee Stock Options. Chapter 14. 1. Fundamentals of Futures and Options Markets, 9th Ed, Ch 14, Copyright © John C. Hull 2016. 2. Nature of Employee Stock Options. USDINR CURRENCY PAIR. A) CONTRACT SPECIFICATION FOR WEEKLY FUTURES CONTRACT ON USDINR - Underlying US Dollar – INR Rupee spot rate (USD - INR) Symbol USDINR Instrument Type FUTCUR Unit of Trading . PAPER –CC 303 MODULE -II. FINANCIAL ENGINEERING. S.MUKHERJEE. FUTURES PRICES AND SPOT PRICES. The futures price converges to the spot price of the underlying asset as the delivery period for a futures contract is approached. When the delivery period is reached, the futures price equals—or is very close to—the spot price.. is . derived . from the . value of another asset.. Why . Derivatives Are . Important?. Derivatives play a key role in transferring risks in the economy - Hedging. The underlying assets include stocks, currencies, interest rates, commodities, debt, electricity, the weather, . A . derivative. is a contract between two or more parties whose value is based on an agreed-upon underlying . financial asset. (like a security) or set of assets (like an index). . Derivatives are financial contracts whose values are derived from the values of underlying assets. They are widely used to speculate on future expectations or to reduce . The size of the derivatives market, . Participants . in the derivatives market. ,. . Financial engineering and risk, . Cash . instruments versus derivatives, . Risk . Management and Derivatives, . Risk . Michael Taylor. FinPricing. https://finpricing.com/download.html. Currency Future. . A currency future or an FX future is a future contract between two parties to exchange one currency for another at a fixed exchange rate on a fixed future date. .