| FI475-Project Study | Six Derivatives Mishaps | 2012/5/8 | Sumitomo (future contracts) Background: 1996‚ Sumitomo Corporation was one of the top copper market makers in the world. During the over 10 years under Hamanaka‚ who was a genius charged on allegations that he could manipulate the price of the metal‚ Sumitomo lost at least $1.8 billion as a result of what it said were unauthorized trades‚ which then lost a third of its value on world markets in less than two months. The affair was
Premium Hedge fund Futures contract Risk
Financial Derivatives & Properties of Options Prices • What are financial derivatives? What are their roles in finance? • Give examples of derivatives and draw their profit diagrams. • Name some financial derivatives that are traded in Bursa Malaysia. 2 • Definition A financial instrument that has a value determined by the price of something else Risk management. Derivatives are tools for companies and other users to reduce risks Speculation. Derivatives can serve as investment vehicles
Premium Call option Put option Option
The Google Case Study – Differentiation in a Commodity Market Posted on September 8‚ 2011 How can a business solve the dilemma to differentiate‚ while also leveraging maximum economies of scale in a commodity market? This case study of Google doesn’t focus on specific innovations‚ but instead looks at how and where Google chooses to innovate. We will explain what defines strategic value chain elements for Google‚ Google’s two strategies of dominating or commoditizing these elements‚ and how this
Premium Google
Nike Case: An Investment Paper Time Context Nike generated $ 2.45 billion in operating income on revenues of $ 19 billion in the fiscal year ended in May 2009. However‚ its stock price has stagnated or became inactive for the last two years and its future sales and earnings are likely to be adversely affected by increased competition from both established firms (like Reebok and Adidas) and upstarts (such as Underarmour). This business problem made Nike to consider an expansion into the fashion
Premium Net present value Rate of return Investment
The Impact of Derivatives on Cash Markets: What Have We Learned? Stewart Mayhew Department of Banking and Finance Terry College of Business University of Georgia Athens‚ GA 30602-6253 October 27‚ 1999 Revised: February 3‚ 2000 The Impact of Derivatives on Cash Markets: What Have We Learned? Abstract This paper summarizes the theoretical and empirical research on how the introduction of derivative securities affects the underlying market. A wide array of theoretical approaches has been applied
Premium Futures contract
Education‚ which is not a public commodity‚ is often times misinterpreted as a purely public commodity because ideally the government should be able to provide education for everyone. A commodity is considered as a pure pubic good if it is unmanageable to exclude non-payers from consuming the good or if the good is not reduced upon consumption of superfluousconsumer. Although it is heartbreaking to know‚ higher education is not a purely public commodity since non-payers can easily be excluded in
Premium Higher education Education University
FNCE30001 Investments Semester 2‚ 2011 Introduction and L1: Risk Aversion and Capital Allocation Subject Administration Issues See the Study Guide on LMS for details! Lectures given in two streams: Wednesdays‚ 12:00pm - 2:00pm (The Spot‚ Basement Theatre) Fridays‚ 10:00am - 12:00pm (The Spot‚ Basement Theatre) First five lectures (on stocks) given by Dr Joachim Inkmann Consultation time: Fridays‚ 1:00pm – 3:00pm Remaining six lectures (on bonds) given by Professor Rob Brown Consultation
Premium Risk aversion Investment Utility
characteristics as well. Genes that are carried by either sex chromosome are said to be sex linked. Men normally have an X and a Y combination of sex chromosomes‚ while women have two X’s. Since only men inherit Y chromosomes‚ they are the only ones to inherit Y-linked traits. Men and women can get the X-linked ones since both inherit X chromosomes. Sex cell inheritance patterns for male and female children X-linked recessive traits that are not related to feminine body characteristics are primarily
Premium Chromosome X chromosome Genetics
DERIVATIVE MARKET Introduction The derivatives markets are the financial markets for derivatives‚ financial instruments like futures contracts or options‚ which are derived from other forms of assets. The market can be divided into two‚ that for exchange traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different as well as the way they are traded‚ though many market participants are active in both What Are derivatives:- In most cases derivatives
Premium Futures contract Derivatives
What is a derivative? A derivative is any financial instrument‚ whose payoffs depend in a direct way on the value of an underlying variable at a time in the future. This underlying variable is also called the underlying asset‚ or just the underlying. Examples of underlying assets include * order asendin cash on delivery * buy amoxapine online without rx * asendin without a prescription * generic for ashwagandha pills * how much does ashwagandha cost * purchase ashwagandha
Premium Hypertension Angiotensin II receptor antagonist