...derivados financieros son los siguientes: * Su valor cambia en respuesta a los cambios de precio del activo subyacente. Existen derivados sobre productos agrícolas y ganaderos, metales, productos energéticos, divisas, acciones, indices bursátiles, tipos de interés, etc. * Requiere una inversión inicial neta muy pequeña o nula, respecto a otro tipo de contratos que tienen una respuesta similar ante cambios en las condiciones del mercado. Lo que permite mayores ganancias como también mayores pérdidas. * Se liquidará en una fecha futura. * Pueden cotizarse en mercados organizados (como las bolsas) o no organizados ("OTC") [editar] Tipología [editar] Dependiendo del tipo de contrato * Permutas o intercambio ("swap") * Futuros (en Mercados Organizados)/Forwards (en OTC) * Opciones o "Americana" (ejecutable durante toda la duración del contrato) o...
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...become big business. Some would argue that the commodification of information has led to a lack of security of personal information and others would argue that the commodification of information is necessary for us to continue growing as a society. This essay will discuss the meaning of information commodification and try to make sense from a utilitarian viewpoint as to whether this is a positive move in the right direction or if this move will cause more adverse effects in the long run. A commodity is a marketable item that is produced to satisfy wants or needs and specifically describes a class of goods that is supplied without qualitative differentiation across a market. Commodification is the transformation of goods and services as well as ideas or entities that normally may not be considered goods, into a commodity. Information refers to answers to questions from which knowledge and data can be derived and information requires a cognitive observer (Wikipedia). So information as a commodity is a gathering of usable data or information that has been transformed into a good that is sold in a market, and that is used to help consumers of the information make informed decisions. Those in the business sector do not like commodification due to the fact that it reduces profitability. Businesses pursue “branding” strategies and look for power and influence in...
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...this will be an important sector * (F) Technology Sector: Being a technology company, innovation and production techniques are important. Ravi’s personal rank order is : 1. Techniques of production, computers, IT, science, e-commerce (The Technology sector) 2. Customers, clients, potential users of products and services (The Market sector) 3. Competitors, industry size and competitiveness, related industries (The Industry sector). Technology Sector : Trends are - SDN (Software Defined Networking), commoditization of hardware (switches and routers), maturing market of networking, Virtualization and Cloud based services. Techniques of producing software – Agile versus Waterfall. Techniques of producing hardware – Commodity silicon versus custom ASICs. Outsourcing and off-shoring trend : New cutting edge design and development in US (Art). Work that is easily replicable or that can be scripted (Science), is given to cheaper Asian nations. Customers : Enterprise, Service Providers. New trend among Cisco’s clients : they are graduating to be consumers of IT services; there is a need for end to end architecture rather than specific point solutions. Related industries : IBM moved to services when faced with similar commoditization. Competitiors : Huawei commoditizing routers and switches, Riverbed, Juniper, HP. Dell, HP facing similar commoditization challenges. Next slide : The 2*2 matrix of Envt Complexity versus Stability . Position of Cisco is...
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...Autarky: the equilibrium or maximizes its welfare when it produces and consumes has only one point in the absence of trade. Commodity or net barter terms of trade: The ratio between the prices of exports and imports is called the net barter terms of trade or as Viner puts it, "the commodity terms of trade." To express this symbolically: Community indifference curve: the various combination of two commodities that yield equal satisfaction to the community or nation Deindustrialization: The process of social and economic change which is due to the reduction in industrial capacity or the activities of a country's manufacturing and heavy industry. Equilibrium-relative commodity price in isolation: it is given by the slope of the tangent common to the nation`s production frontier and indifference curve at the autarky point of production and consumption. Equilibrium-relative commodity price with trade: is the common relative price in both nations at which trade is balanced General equilibrium model: the deals with only two nations, two commodities and two factors Incomplete specialization: Production of goods that compete with imports. Increasing opportunity costs: that the nation must give up more and more of one commodity to release just enough resources to produce each additional unit of another commodity Law of reciprocal demand: it explains how the barter rate, of exchange is determined between the two nations. Marginal rate of substitution (MRS): it is of x for y...
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...scarce. He does not deny that in its early stages of development, when IT resources were scare or rare, it was a strategic resource that companies could use to gain a competitive advantage. Carr goes on to explain that IT has become more affordable and thus is available for all companies to use. He claims that this makes IT less of a strategic resource and more a commodity. He compares IT’s transition from resource to commodity to that of the development of railway systems and electrical power. He references the fact that these now common commodities were once strategic resources that were used by companies to gain competitive advantages in the late 1800’s and early 1900’s. Carr goes on to explain that no companies base their business strategy on using electrical power and thus business now should transition away from basing strategy on IT. Carr continues with his argument that IT doesn’t matter by describing how the biggest risk with IT is overspending on unnecessary resources, creating a cost disadvantage. Carr outlines three key philosophies that companies should employ to properly manage IT as a commodity rather than a strategic resource. First, companies should reduce IT spending by differentiating necessary and unnecessary expenditures and acting only on those that are necessary. Second, companies should not operate on the leading edge of technology. Rather, they should hang back and invest in resources that are proven out....
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...The satisfaction someone receives from consuming commodities is called utulity.Total utility refers to the total satisfaction from consuming some commodity. For example, the total utility of consuming 10 units of any commodity is the total satisfaction those 10 units provide. Marginal utility refers to the change in satisfaction resulting from consuming a little more or a little less of the commodity. The marginal utulity of the tenth unit consumed is the additional satisfaction provided by the consumption of that unit, or in other words, the difference in total utility gained by consuming 9 units and by consuming 10 units. The significance of this distinction can be seen by considering two questions: (1) If you had to give up consuming one of the following commodities completely, which would you choose: water or the movies? (2) If you had to pick one of the following, which would you choose: increasing your water consumption by 35 gallons a month (the amount required for an average bath) or attending one more movie a month? In (1) you are comparing the value you place on your total consumption of water with the value you place on all your attendance at the movies. You are compering the total utility of your water consumption with the total utility of your movie attendance. There is little doubt that everyone would answer (1) in the same way revealing that the total utility derived from consuming water exceeds the total utility derived from attending the movies. In (2)...
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...内容摘要 金融衍生工具作为金融创新最为核心的部分，从其诞生开始到现在，经历了一个迅速发展的过程，已被越来越多的企业所使用。金融衍生工具的出现是为了规避风险，除此之外，金融衍生工具也在降低筹资成本、优化融资结构、提高企业价值等方面做出了巨大贡献，也正因为如此，金融衍生工具能够在如此短的时间内有如此迅猛的发展。一方面，国际金融市场因金融衍生工具的发展而变的异彩纷呈，另一方面，我们也感受到了金融衍生工具因其自身的高杠杆性、高复杂性等特点给金融市场所带来的巨大风险。 本文主要对金融衍生工具的内涵、发展等基础背景知识进行了介绍，分析金融衍生工具在金融危机中的作用以及传导机制；介绍了金融衍生工具的发展给我国经济造成的影响；并就后危机时代金融衍生工具的发展提出建议。 关键词：后危机时代；金融衍生工具； 金融创新 Abstract Financial derivatives as the most central part of the financial innovation, from its birth to the present, has gone through a process of rapid development, more and more enterprises have been used. The emergence of financial derivatives in order to avoid risks, In addition, financial derivatives are lower financing costs, optimize the financing structure, and enhance enterprise value has made a huge contribution, it is because of this, financial derivatives in such a short such rapid development in the period of time. On one hand, the colorful change of the international financial markets due to the development of financial derivatives, on the other hand, we also feel the financial derivatives for its own high-leverage, high complexity and characteristics of the financial markets of the enormous risk. This paper introduces this article research background and the significance, the research content, method and so on; introduces the mainly part of derivative financial instruments, such as the connotation development of background knowledge are introduced, analysis of the financial...
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...“Liability Management at General Motors" Mr. Bello was in charge making the decision of whether or not it was ideal to modify GM’s interest rate exposure, and how. If he did nothing, it would insulate GM’s cash flows fully from any interest rate exposure if they locked in at a rate of 7.63% plus transaction costs. However, they would not be able to lower the cost of debt in the event that interest rates declined. If he went with Swaps, they would use the current 6-month LIBOR rate of 4.31%, which was likely never to go below 4%, making them unsuitable for insulating GM’s cash flows. The option on treasury notes would flatten the long-term yield curve, and the long-term yield rate was to remain high above the current level. Price at maturity would operate below the bull spread making this option also not suitable for GM’s interest rate exposure. If GM opted to do benchmark caps, selling a cap with an exercise price of 10% would meet GM’s objective about 65% of the time, however there is a huge risk of unlimited losses at interest rates above 10%. Still, this is not a bad option. Swaptions are another option that isn’t terrible for GM. This option protects GM pretty well because if interest rates are high gm would be paying higher floating rates, however they’d be offset by the premium received for selling the option. If interest rates were low, the swaption would not be exercised, and GM would again be paying the fixed rate obligation, but lowered costs of borrowing...
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...A project report on STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012) Submitted to _______________________________________________________ __________________________________________________________ Nashik In partial fulfillment of the Requirement of the award of the degree Of Master of Business Administration (MBA-Finance) By: __________________________________________________ Under The Guidance of Through The Coordinator Study Centre Code: _________ CERTIFICATE This is to certify that the project report entitled on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012)” for the Academic Year 2010-2012 Submitted to the School of Commerce and Management, Yashwantrao Chavan Maharashtra Open University, Nashik in partial fulfillment of the requirement for the award of Degree of Master of Business Administration (MBA) is original work carried out by __________________________________________________ with PRN-2010017002887675 under my guidance. The matter embodied in this project is genuine work done by the student and has not been submitted to this University or any other University/Institute for the partial fulfillment of the required study. Date: Place: DECLARATION I, __________________________________________________, the student of MBA-Finance, completed project on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET” PERIOD (2009-2012), for the Academic Year 2010-2012. The information provided in this project...
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...A project report on STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012) Submitted to _______________________________________________________ __________________________________________________________ Nashik In partial fulfillment of the Requirement of the award of the degree Of Master of Business Administration (MBA-Finance) By: __________________________________________________ Under The Guidance of Through The Coordinator Study Centre Code: _________ CERTIFICATE This is to certify that the project report entitled on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012)” for the Academic Year 2010-2012 Submitted to the School of Commerce and Management, Yashwantrao Chavan Maharashtra Open University, Nashik in partial fulfillment of the requirement for the award of Degree of Master of Business Administration (MBA) is original work carried out by __________________________________________________ with PRN-2010017002887675 under my guidance. The matter embodied in this project is genuine work done by the student and has not been submitted to this University or any other University/Institute for the partial fulfillment of the required study. Date: Place: DECLARATION I, __________________________________________________, the student of MBA-Finance, completed project on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET” PERIOD (2009-2012), for the Academic Year 2010-2012. The information...
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...1. Introduction The Global Derivatives Market how it is work a- Fundamentals and Market Characteristics 2.1 Basics of derivatives Derivatives are totally different from securities. They are financial instruments that are mainly used to protect against and manage risks, and very often also serve arbitrage or investment purposes, providing various advantages compared to securities. Derivatives come in many varieties and can be differentiated by how they are traded, the underlying they refer to, and the product type. Definition of derivatives A derivative is a contract between a buyer and a seller entered into today regarding a transaction to be fulfilled at a future point in time, for example, the transfer of a certain amount of US dollars at a specified USD-EUR exchange rate at a future date. Over the life of the contract, the value of the derivative fluctuates with the price of the so-called “underlying” of the contract – in our example, the USD-EUR exchange rate. The life of a derivative contract, that is, the time between entering into the contract and the ultimate fulfi llment or termination of the contract, can be very long – in some cases more than ten years. Given the possible price fluctuations of the underlying and thus of the derivative contract itself, risk management is of particular importance.1) Derivatives must be distinguished from securities, where transactions are fulfilled within a few days (Exhibit 1). Some securities have derivative-like characteristics...
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...Traditional VS Islamic Financial Derivatives To: Prof. Naser Abu Mustafa By: Mwaffaq Al Jayousi & Mohammad Al Shdooh Abstract This study focuses the light on defining financial derivatives and briefly describe their different types (Options, Forwards, Futures, Swaps, etc.). At the same time it tries to find if these financial derivatives exists in the Arab world, how they are implemented, and if we have an Islamic alternatives for them. Introduction There is a big debate in the Arab world regarding the usage of financial derivatives, Wither they are legal according to Islam or not, and If they are illegal in Islam; are there any Islamic alternatives to them. First we have to ask our self: Is there any need to use derivatives? And why they recently became so popular in the western countries? The need for financial derivatives emerges when people realize that there must be a way to reduce the risk associated with the trading of different kinds of goods. Risks such as price fluctuations and the uncertainty about the future market conditions. And since there are some people who are willing to bear this risk instead of us, this market took off and recently because of the communications revolution it flourished. Then why these financial derivatives did not reach the Arab world? The answer is simply because they hugely rely on speculations and anticipation; which are considered illegal according to Islam. But someone can ask: if it is illegal in Islam, then how come we...
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...their crops’ prices, lobbied a congressman from Michigan named Gerald Ford to ban trading in onion futures. Supported by the president-to-be, they got their way. Onion futures have been prohibited ever since. Futures are agreements to trade something at a set price at a given date. They are perhaps the simplest example of a derivative, a contract whose value is “derived” from the price of a c ommodity or another asset. Derivatives c ontinue to be vilified, usually when someone loses a lot of money. Orange County and Procter & Gamble lost fortunes on them in the 1990s. They were at the core of Enron’s failure. And in September 2008 they brought American International Group (AIG), a mighty insurer, to its knees. Its fetish for credit default swaps (CDSs), a type of derivative that insures lenders against borrowers’ going bust, led it to guarantee at least $400 billion-worth of other c ompanies’ loans—inc luding those of Lehman Brothers. The Americ an government forked out $180 billion to save AIG from collapse. Every catastrophe brings c alls for restrictions on derivatives. This year Joseph Stiglitz, a Nobel economic s laureate, has said that their use by the world’s largest banks should be outlawed. But derivatives have defenders too. Used carefully, they are an excellent—some would say indispensable—tool of risk-management. Myron Scholes, another Nobel prize-winner, says a ban would be a “Luddite response that takes financ ial markets back decades.” Because of the mayhem of the...
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...What Needs to be Done – The Follow Through Plan Momentum is a beautiful force, especially if moving in the desired direction. However, economic momentum can be lost quickly if the inertia that mobilized it dissipates with waning enthusiasm. This article is about the continuation of what needs to be done to maintain positive economic inertia and provide a kinetic boost that will charge the US economy successfully into the foreseeable future. Although time is of the essence in any equation dealing with momentum, some of the “Follow Through Plan’s” planks discussed below have greater priority versus the remaining. But let us not pretend that if some of the plan is sacrificed due to the “feel good” inspirations fostered by the beginnings of proactive economic stimulus, it will not be sustainable if the core retains the properties of risk-tails that can demolish the forward curve permanently … and swiftly. Black Swan events, or those considered to be Gaussian anomalies or 9th degree standard deviation eclipses do not, and have not, occurred at the interval statistical quants have modeled. In fact the anomaly is to believe that Black Swan events are anything but a force of nature and occur about as common, as frequent and as necessary as the changing of the seasons. The “Follow Through Plan”, needed to retain economic leadership of the United States well into the 21st century, should include all of the following critical levels of change and direction. The order...
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...Demystifying T 20 The Milken Institute Review The Merriam-Webster dictionary defi nes a derivative in the fi eld of chemistry as “a substance that can be made from another substance.” Derivatives in fi nance work on the same principle. These fi nancial instruments promise payoffs that are derived from the value of something else, which is called the “underlying.” The underlying is often a fi nancial asset or rate, but it does not have to be. For example, derivatives exist with payments linked to the S&P 500 stock index, the temperature at Kennedy Airport, and the number of bankruptcies among a group of selected companies. Some estimates of the size of the market for derivatives are in excess of $270 trillion – more than 100 times larger than 30 years ago. When derivative contracts lead to large fi nancial losses, they can make headlines. In recent years, derivatives have been associated with a few truly notable events, including the collapses of Barings By René M. Stulz Financial Derivatives Third Quarter 2005 21 Bank (the Queen of England’s primary bank) and Long-Term Capital Management (a hedge fund whose partners included an economist with a Nobel Prize awarded for breakthrough research in pricing derivatives). Derivatives even had a role in the fall of Enron. Indeed, just two years ago, Warren Buffett concluded that “derivatives are fi nancial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.” michael...
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