PDF-EC FINANCIAL DERIVATIVES Exercise

A stock price is currently 40 At the end of the month it will be either 42 or 38 The riskfree rate of continuously compounded interest is 8 per annum What is the value of a onemonth European call option with a strike price of 39 Answer The v. Accounting Changes and Error Corrections. Both GAAP and IFRS treat changes in accounting . estimates. prospectively. Changes in accounting . principles. are accounted for retrospectively for both GAAP and IFRS.. 6. th. Edition, Copyright . © John C. Hull 2005. 1. 8.. 1. Chapter 18. Value at Risk. Options, Futures, and Other Derivatives. 6. th. Edition, Copyright . © John C. Hull 2005. 1. 8.. 2. History of VaR. Financial Derivatives Fall 2008 Prof. Kensinger page 2 price, but would desire to do so only if the exercise price were above the market price. Because of the privilege of opting out of the obliga Speakers: Henrietta Podd. Head of Advice and Origination. Canaccord Genuity. Peter Moore . Assistant Director of Corporate Finance. Circle Housing Group. Chair: Joseph Carr. Policy Leader. National Housing Federation. Financial Decision Making. Study Unit . 5 - Financial . Instruments and Cost of . Capital. Ronald Schmidt, CMA, CFM. Derivative Instrument. Investment in which gain or loss is . derived . from some other economic event. . Introduction to Derivatives . Agenda. In this session, you will learn . about:. What are Derivatives?. Need for Derivatives. Concept of Underlying Asset. Participants in a Derivative Market. Hedgers. Some needed trig identities:. Trig Derivatives. Graph . y. 1. = sin x. . and . y. 2. = . nderiv. (sin x). What do you notice?. Proof Algebraically. (use trig identity for . sin(x + h). ). Proof Algebraically. Introduction. Syllabus. Class Format . Part 1 - Generic Derivatives & Options. Part 2 - Futures, Swaps, MBS. Grade. Assignments/Projects. Option Programs. Exam-Computations. Email. Derivatives are financial instruments whose price and value derive from the value of the underlying assets or other variables (ISDA). 1. Nature of Swaps. A swap is an agreement to exchange cash flows at specified future times according to certain specified rules. Options, Futures, and Other Derivatives, 8th Edition, Copyright © John C. Hull 2012. Understand . what derivatives are and how they are used to manage risks.. Understand . how to account for derivatives.. Analyze . whether a hybrid/compound instrument issued for financing purposes . represents a . What were the contributing factors to the financial crisis?. How did the crisis begin?. What did the government do in response?. We focused mostly on big pictures. Discussion so far…. Dictionary definition: “financial instrument whose value is derived from one or more other underlying assets”. The Impact of MiFID II and EMIR on Commodities. Hannah Meakin (Partner) and Cat Blake (Associate). 5 March 2014. Overview. MiFID II: What are “financial instruments”?. Additions and amendments to the type of financial instrument that is within scope of MiFID. Qualifications for SIE Exemption A pass result for the following Chartered Institute for Securities & Investment (CISI) exams (or combination of exams) qualif ies an individual for the Securities Fernando . Durães . 1, 2. , . Ana Rita . Neves . 1, 2. , . Joana . Freitas-da-Silva . 2, 3. , . Annamária. . Kincses. . 4. , . Eugénia . Pinto . 2, 5. , . Paulo . Costa . 2, 3. , . Madalena . Pinto .