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FNCE30007 - Derivative Securities

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37 Pages Complete Study Notes > 2 Years old
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Topics this document covers:
Economy Finance Money Financial markets Futures contract Futures exchange Derivative Margin Short Forward contract Hedge Option
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Topics this document covers:
Economy Finance Money Financial markets Futures contract Futures exchange Derivative Margin Short Forward contract Hedge Option
Sample Text:
Exchanges: → The Chicago Board of Trade, The Chicago Mercantile Exchange, The New York Mercantile Exchange (merged into CME Group) → Other Large exchange : NYSE Euronext, Eurex, BM&FBOVESPA and Tokyo Financial Exchange → Allow people who want to buy or sell assets in the future to trade with each other Long future position : New York who agreed to buy Short future position : Kansas who agreed to sell Price would be known as the future price determined by law of supply and demand. Spot price is for immediate or almost immediate delivery while future price is price for delivery at some time in future. History of Futures Market : 1. Traced back to the Middle age which were originally developed to meet the need of farmers and merchants 2. Scarcity years prices would be high while an oversupply would result in disposed of fire-sale prices. 3. Negotiating provide a...
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