Nick Leeson ’s Double Life In 1999‚ director/screenwriter James Drearden released the movie Rogue Trader‚ which encapsulates the true life of futures trader Nick Leeson and his role in the downfall of Barings Bank. Ewan McGregor stars at Nick Leeson‚ an ambitious young British stock trader while Anna Friel plays his wife Lisa. Drearden ’s focus is on Leeson ’s activities at the Singapore Stock Exchange but he also constructs a love story subplot that adds little to the central plot. Critics of
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PROs AND CONs OF INCREASING OIL PRICE 1. INTRODUCTION In this decade‚ the price of oil has been raised 3 times. The era of President SBY has the record of increasing oil price (premium). The policy was made by SBY has become pro and con between the expert of economic. Some people said that increasing the oil price is just can’t be done because it’s contra with UU‚ but government said that if we don’t raise the oil price it will absorb the APBN because the import oil price is higher and higher
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LIBOR. One conversation between a trader and a submitter went public and the submitter basically ensured the trader he would submit one less basis point from what he should actually submit.i A calculation derived from Galen Burghardt’s The Eurodollar Futures and Options Handbook shows that a manipulation of one basis point for a low 3-month fix can earn the trader over $2million dollars from an $80 billion deal. For a deal that is often settled‚ the derivative traders made their fair share of money by
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which was 50 times the 5.5 billion level seen a decade earlier‚ according to Barclays Capital. Traders for years have speculated in the commodity future markets; however the future markets are not for investors with a modest-sized investment nest-egg and are not well suited to a long-term investment strategy due to the need to roll over expiring future contracts. Exchange-traded product(E.T.P)‚ on the other hand‚ generally have no leverage and are therefore a much less risky way to play the commodity
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Introduction Origin of the Assignment: This assignment is prepared with the respect to the Module of “Business Environment.” I am assigned to prepare a paper by our honorable instructors Ellie Semsar to examine the factors that influence and determine the oil price in UK oil industry. The report also aims to provide how much and to what extent‚ Government policies influence oil prices in UK. Objective of the Assignment: This assignment has been prepared considering a number of objectives. The
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into circumstances of the collapse of Barings 18 July 1995 - http://www.numa.com/ref/barings/bar00.htm McNee‚ A. 2004. Barings Case Study. eRisk.com. February‚ 2004. http://www.erisk.com/Learning/CaseStudies/Barings.asp Lim‚ Michael Choo San Barings Futures (Singapore) Pte Ltd : investigation pursuant to section 231 of the Companies Act (Chapter 50) : the report of the Inspectors appointed by the Minister for Finance / Michael Lim Choo San‚ Nicky Tan Ng Kuang. Singapore: Singapore Ministry of Finance
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Problem 20-6 on Call Options Based on Chapter 20 (Excel file included) You own a call option on Intuit stock with a strike price of $40. The option will expire in exactly 3 months’ time. a) If the stock is trading at $55 in 3 months‚ what will be the payoff of the call? b) If the stock is trading at $35 in 3 months‚ what will be the payoff of the call? c) Draw a payoff diagram showing the value of the call at expiration as a function of the stock price at expiration. Short call: value at expiration
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LINK TECHNOLOGIES1 Link Technologies‚ a small firm located in San Jose‚ California‚ is currently engaged in the development‚ manufacture‚ and sale of high-speed fax modems for use in personal computers. The company was created in 1980 by Mr. James Lee‚ a researcher who was employed at IBM’s T.J. Watson research center‚ and two former graduate school classmates from Cornell University. At the time‚ the personal computer business was in its infancy‚ and the company sought to fill a niche by providing
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2. This bank wishes to hedge its interest rate risk exposure with 10-year Treasury bond futures. A 10-year‚ 5% coupon Treasury bond (basis for the futures contract) has a duration of 7.5 years. If 10-year Treasury bond futures contracts currently are selling for $102‚000 per contract‚ what should the bank do to hedge its interest rate risk? We also know that Treasury futures prices move 1.5% for every 1% change in spot Treasury prices. (10 points)
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feels about derivatives we conducted a poll and the question asked was‚ "As an investor‚ what is your perception about derivative instruments" and the results were as follows. Out of the total respondents‚ 47% voters believe that derivative contracts are just speculation medium‚ 31% believe it’s a hedging tool and 22% believe that it allows one to take higher exposure than cash markets with equivalent initial cash outgo. We shall now briefly discuss the advantages (if any) and the disadvantages
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