TAILIEUCHUNG - Lecture Financial institutions, instruments and markets (6/e): Chapter 19 - Christopher Viney

Chapter 19 - Futures contracts and forward rate agreements. In this chapter, you will: Consider the nature and purpose of derivative products, outline features of a futures transaction, review the types of futures contracts available through a futures exchange, identify why participants use derivative markets and how futures are used to hedge price risk,. | Chapter 19 Futures Contracts and Forward Rate Agreements Websites: 19- Learning Objectives Consider the nature and purpose of derivative products Outline features of a futures transaction Review the types of futures contracts available through a futures exchange Identify why participants use derivative markets and how futures are used to hedge price risk Identify risks associated with using a futures contract hedging strategy Explain and illustrate the use of an FRA for hedging interest rate risk Describe the use of a forward rate agreement for hedging interest rate risk 19- Chapter Organisation Hedging Using Futures Contracts Main Features of a Futures Transaction Futures Market Instruments Futures Market Participants Hedging: Risk Management Using Futures Risks in Using Futures Markets for Hedging Forward Rate Agreements (FRAs) Summary 19- Hedging Using Futures Contracts Futures contracts and FRAs are called derivatives because they derive their price from an underlying physical market product Two main types of derivative contracts 1. Commodity (. gold, wheat and cattle) 2. Financial (. shares, government securities and money market instruments) Derivative contracts enable investors and borrowers to protect assets and liabilities against the risk of changes in interest rates, exchange rates and share prices 19- Hedging Using Futures Contracts (cont.) Hedging involves transferring the risk of unanticipated changes in prices, interest rates or exchange rates to another party A futures contract is the right to buy or sell a specific item at a specified future date at a price determined today The change in the market price of a commodity or security is offset by a profit or loss on the futures contract 19- Hedging Using Futures Contracts (cont.) Example: A farmer wants to sell wheat in a couple of months, .

• Tài chính doanh nghiệp
• Futures contracts
• Futures market instruments
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Essentials of Investments
• Futures Markets
• Risk Management
• Basics of Futures Contracts
• Existing Contracts
• Trading Mechanics
• Learning management system
• Financial derivatives
• Lecture Financial derivatives
• Specification of futures contracts
• Delivery arrangements
• Business finance
• Lecture Business finance
• Capital market
• Financial management
• Futures exchanges
• Lecture Finance
• Financial statement analysis
• Futures markets terms
• The CFA program
• Ebook Analysis of derivatives
• Forward markets and contracts
• Futures markets and contracts
• Option markets and contracts
• Swap markets and contracts
• Maturity effect
• Samuelson hypothesis
• Mixture of distribution hypothesis
• Open interest
• Sources of finance
• The derivatives world
• Lecture Derivatives
• Stock index futures
• Stock indexes
• Investment environment
• Lecture Investments
• Active portfolio management
• Capital markets
• Interest rate futures
• Treasury bills
• Characteristics of eurodollars
• International Finance
• Lecture International finance
• Tài chính quốc tế
• Bài giảng Tài chính quốc tế
• Currency futures
• Forward contracts
• The futures market
• Market mechanics
• Market participants
• Fundamentals of investments
• Risky asset allocation
• Performance evaluation
• Stock options
• Option valuation
• Investments valuation
• Risk management process