PPT-MODULE I Concept of Risk and Derivative

The size of the derivatives market Participants in the derivatives market Financial engineering and risk Cash instruments versus derivatives Risk Management and Derivatives Risk . Notation dx dx y 00 f 00 Thus dx dx dy dx Example Find the second derivatives of the following functions a 2 x y 00 2 b y 00 c 5 4 5 y 00 The 64257rst derivative gives information about whether a funct ion increases or decreases In fact A d Risk and Choice Conference in Honor of Louis . Eeckhoudt. The 5. th. and 6. th. derivatives. Whenever I see Larry Summers, he asks me “How is the 6. th. derivative doing?” or sometimes “How is the 5. Section 3.1b. Remember, that in . graphical terms. , the derivative of a. function at a given point can be thought of as the . slope. of the curve at that point…. Therefore, we can get a good idea of what the graph of. Points of Inflection. Section 4.3a. Writing: True . or . False – A . critical point . of. a function always signifies . an . extreme. value . of the . function. Explain.. FALSE!!! – Counterexample???. 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. Summary of Maximum and Minimum Introduction. 1) Local maximums and minimums of a function, . f(x). , often . (but not always). occur at stationary points where the function's derivative, . f'(x). , is zero.. Method in One Dimension and One-Dimensional Search with First. Derivatives. Yunfei. . duan. . Hui . Pan.  Golden section search combined with parabolic interpolation. Formula for the abscissa x. A parabola through three points f(a) f(b) f(c). We will learn about:. Concavity -Points of Inflection - The Second Derivative Test. Review. If a functions wants to switch from decreasing to increasing. or visa versa, what are its options of approach/attack! (There is only three options). Innatism. Today we will be considering the following criticisms of Concept . Innatism. :. Alternative explanations for proposed innate ideas.. Locke’s arguments against . I. nnatism. Innatism’s. reliance on the non-natural.. FGFOA Conference, Orlando FL,. Mark A. White, CPA, Partner, Purvis Gray & Company LLP. Jim Towne, Senior VP, DerivActiv. 1. Statement 53. Accounting and Financial Reporting for Derivative Instruments. InterContinental – . October 2015 – Private and Confidential. W. H. Y. . F. OO. D. . AN. D. . BEVERAG. E. . I. S. . I. M. P. ORTAN. T. D. IFF. E. R. E. N. TI. A. TI. N. G. . O. U. R . BR. A. Summary of Maximum and Minimum Introduction. 1) Local maximums and minimums of a function, . f(x). , often . (but not always). occur at stationary points where the function's derivative, . f'(x). , is zero.. The Product Rule. The derivative of a product of functions is NOT the product of the derivatives. . If . f. and . g. . are both differentiable, . then:. In other words, the derivative of a product of two functions is the first function times the derivative of the second function plus the second function times the derivative of the first function.. 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 .