Essays Tagged: "Futures contract"

Structured Finance

pay Enron $350 million upfront. Enron reported this transaction in its books as cash and a prepaid futures contract liability. Enron agreed to buy the same amount of gas and pay Chase/Mohonia $356 mi ... Mohonia $356 million in six months. Enron reported this transaction in its books as cash-settlement futures contract asset and a corresponding payment liability.Enron with Citigroup's structured finan ...

(3 pages) 207 1 4.4 Aug/2003

Subjects: Businesss Research Papers

Derivatives - swaps, futures, options.

vesDerivative in India: A ChronologyL.C. Gupta Committee ReportJ.R. Verma Committee ReportForwards, Futures, Options & SwapsForwardFuturesOptionsSwapsFutures - A Procedure NoteA Futures ContractIn ... res ContractIndex Futures - Indian ScenarioSEBI guidelines for participation by FII's in trading in FuturesRBI guidelines for participation by FII's in trading in FuturesTraders in the Futures MarketF ...

(45 pages) 687 0 4.3 Nov/2003

Subjects: Businesss Research Papers > Case Studies

Using futures contracts to take advantage of the January Effect.

LYON FANNE CASEOptions and Futures - Dec 2004Introduction:We divided our report in three parts, which correspond to three steps ... ect profits. Pr. LYON FANNE chose the most aggressive strategy which consists in buying stock index futures contracts. Indeed, buying futures maximizes the evolution of the index. Using futures, you c ... to minimize transactions costs which are a significant point for small investors.Investor could use futures only on one index (i.e., an intra-market spread,). This strategy requires an initial margin ...

(12 pages) 53 0 5.0 Jan/2004

Subjects: Businesss Research Papers > Case Studies

DERIVATIVE SECURITIES RESEARCH PAPER

ill protect the investor and hedge against the ill effects of market volatility. Derivatives called Futures and Options might do just that if used properly.Major Types of DerivativesDerivatives includ ... s of DerivativesDerivatives include interest rate futures contracts, forwards contracts, options on futures contracts, swap options, mortgages-backed securities, interest rate caps and floors, commodi ...

(15 pages) 391 0 4.3 Apr/2004

Subjects: Businesss Research Papers

Derivatives,futures & options.

WHAT ARE COMMODITIES/FUTURESToday's Commodities include a much broader spectrum then the agricultural products that start ... okerage houses have risk in inventories of bonds. Mutual funds have large positions in stocks. With futures trading on the exchanges this risk of future price can be offset to the speculator. The spec ... related cost of storage. Inherent price risks are the primary reasons for the establishment of the futures contract.DERIVATIVES1. WHAT ARE DERIVATIVESThe usual textbook definition given for derivativ ...

(25 pages) 386 0 4.8 Apr/2004

Subjects: Businesss Research Papers > Accounting

Currency Hedging - MGT 448

ge exchange rate risk (Brealey 679).Another way to hedge against foreign markets is with the use of futures contracts. Futures contracts are agreements made in the present for the purchase or sale of ... chase or sale of an asset in the future (Brealey 679). One difference between forward contracts and futures contracts is standardization. Forwards are for any amount, where futures are for standard am ...

(2 pages) 429 0 3.4 Aug/2004

Subjects: Businesss Research Papers > Management

Commodities Broker

month. A trader can cancel a trade by buying or selling of the same delivery month. If you trade in futures, contracts fall into two broad areas, speculative and hedging.If you are speculative trading ... broad areas, speculative and hedging.If you are speculative trading then you are buying or selling futures contracts. The idea is to make a profit from all of the future price changes. Most all specu ...

(5 pages) 17 0 5.0 Aug/2001

Subjects: Businesss Research Papers

Blades, Inc. Case Study Analysis Paper

e two call options contracts (since each option contract represented 6,250,000 yen) or purchase one futures contract (which represented 12.5 million yen).The futures price on yen had historically exhi ... ief financial officer (CFO), preferred the flexibility that options offer over forward contracts or futures contracts because he could let the options expire if the yen depreciates. He would have like ...

(4 pages) 164 0 5.0 Dec/2007

Subjects: Businesss Research Papers

Studies Conducted in estimating hedge ratios

. This is known as hedging. To reduce risk, the hedger determines a hedge ratio, i.e. the number of futures contracts to buy or sell for each unit of spot commodity on which he bears price risk. Like ... uy or sell for each unit of spot commodity on which he bears price risk. Like any other derivative, futures contracts can be used as an insurance against unfavourable price fluctuations (Johnson, 1960 ...

(7 pages) 28 0 4.0 Apr/2009

Subjects: Businesss Research Papers > Markets & Exchanges

How can stock index futures be used for hedging?

SID: 2399092 351FIN How can stock index futures be used for hedging?the nature of stock index futuresAs a financial instrument which is used ... stock index futuresAs a financial instrument which is used to reduce risk for invstors, stock index futures have some characteristics:1 Stock index futures contracts are based on the share index.2 Sto ... tand for those indexes which are authoritative as well as representative.3 The price of Stock index futures contracts is denoted by "points" which are used for share index.4 Stock index futures contra ...

(7 pages) 28 0 0.0 Apr/2009

Subjects: Social Science Essays > Economics > Foreign & International Economics

Options Trading and Options Markets in Turkey

IntroductionDerivatives trading such as futures, forward, options, swaps and their engineered types composes the majority of financial marke ... ing of 2005. This project will give information about the most popular financial tools, options and futures, including their principles, trading mechanism and how to buy or sell futures in Turkey.Opti ... s price in known as the exercise or strike price, and it does not change.General Characteristics of FuturesA futures contract is an agreement between two counterparties that fixes the terms of an exch ...

(7 pages) 17 0 5.0 Aug/2009

Subjects: Businesss Research Papers > Markets & Exchanges