Finc 306 Study guides, Class notes & Summaries

Define Derivarive a financial instrument that has a value determined by the value of something else (underlying) Examples of Derivatives Stocks, bonds, commodities, currencies, interest rates Types of Derivatives Forwards, futures, options, swaps Why use derivatives Risk management Speculation Reduce transaction costs Regulatory Arbitrage Difference between Market value and Notional value market value is the sum of the market value of all the claims that could be traded

What is a Forward Contract? ∙A forward contract is a binding agreement to buy/sell an underlying asset in the future at a price set today Describe the meaning of a forward price, delivery date and payoff of a forward contract ∙The forward price is the price at which two parties agree today to transact/deliver in the future ∙The delivery date is the time at which the contract is settled ∙The payoff of a forward contract is the value created by the position at expiration Payoff f...

What Is a Derivative?A financial instrument that has a value determined by the price of something else (i.e., the underlying). NovationNovation is the substitution of one counterparty for another. Common underlying assetsThe most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. What are the four stages of derivatives history presented in lectures?1. In ancient Greece, around the 6th century B.C., there were the equivalent of der...

DerivativeA financial instrument that has a value determined by the price of the underlying. An agreement between two parties Underlying assetsthe most common include stocks, bonds, commodities, currencies, interest rates and market indexes Types of DerivativesForwards, futures, options, swaps Use of derivativesrisk management, speculation, reduce transaction costs, regulatory arbitrage Measures of market size1. Market value: # units of claims x price of claims 2. Notional value: #uni...

You passed this Milestone 15 questions were answered correctly. 6UquNestiIonTs we3re a—nswerMed inIcLorrEectSly.TONE 3 Which example below represents a fixed input? Office space being rented Hourly employees Utility bills Raw materials for construction CONCEPT Production Function and Constraints 2 The Prisoner's Dilemma can come into play when firms . are forced to advertise and market their goods to consumers are regulated by the governmen...

Sophia __ Microeconomics Final Milestone Which of the following is true about the field of economics? CONCEPT What is Economics? 2 A real estate agency’s policy is to start all sales commission negotiations at 6%. However, the agency is willing to accept sales commissions as low as 5%. The scenario above is an example of which principle? CONCEPT M arket Equilibrium 3 CEOs are limited in making policy changes regarding climate change by all of the following EXCEPT...

FINC 306 -Exam (elaborations) FINC 306 FINC 306 - Sophia Microeconomics Unit 4 Milestone 4

FINC 306 MICROELECTRONICS MILESTONE 4 UNIT 4 EXAM

FINC 306 Sophia __ Microeconomics Unit 4 Milestone 4.

Sophia __ Microeconomics Final Milestone.