tailieunhanh - Lecture Financial institutions, instruments and markets: Chapter 18 - Christopher Viney

Chapter 18 - Futures contracts and forward rate agreements. In this chapter you will learn: Outline features of futures contracts, identify futures market instruments and participants, understand the different types of risks that can be hedged using futures, overview of forward rate agreements. | Chapter 18 Futures Contracts and Forward Rate Agreements Website: Learning Objectives Outline features of futures contracts Identify futures market instruments and participants Understand the different types of risks that can be hedged using futures Overview of forward rate agreements Chapter Organisation Introduction General Principles of Hedging Using Futures Main Features of Futures Transactions Futures Market Instruments Futures Market Participants Chapter Organisation (cont.) Hedging: Risk Management Using Futures Risks in Using Futures Markets for Hedging Forward Rate Agreements (FRAs) Summary Introduction Futures contracts and FRAs are called derivatives because they derive their price from an underlying physical market product Two main types of derivative contracts Commodity (. gold, wheat and cattle) Financial (. shares, government securities and money market instruments) Introduction (cont.) Derivative contracts enable investors and borrowers to protect assets and liabilities against the risk of changes in interest rates, exchange rates and share prices Chapter Organisation Introduction General Principles of Hedging Using Futures Main Features of Futures Transactions Futures Market Instruments Futures Market Participants General Principles of Hedging Using Futures 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 General Principles of Hedging Using Futures (cont.) The change in the market price of a commodity or security is offset by a profit or loss on the futures contract Example: a farmer wants to sell wheat in a couple of months. He is concerned that the price is going to fall in the meantime. How can he hedge this price risk? General . | Chapter 18 Futures Contracts and Forward Rate Agreements Website: Learning Objectives Outline features of futures contracts Identify futures market instruments and participants Understand the different types of risks that can be hedged using futures Overview of forward rate agreements Chapter Organisation Introduction General Principles of Hedging Using Futures Main Features of Futures Transactions Futures Market Instruments Futures Market Participants Chapter Organisation (cont.) Hedging: Risk Management Using Futures Risks in Using Futures Markets for Hedging Forward Rate Agreements (FRAs) Summary Introduction Futures contracts and FRAs are called derivatives because they derive their price from an underlying physical market product Two main types of derivative contracts Commodity (. gold, wheat and cattle) Financial (. shares, government securities and money market instruments) Introduction (cont.) .

• Tài chính doanh nghiệp
• Financial institutions
• Financial Instruments
• Financial markets
• Financial system
• Impact of globalisation
• Functions of the financial system
• Lecture Financial markets and institutions
• Financial institutions markets
• Risks at financial institutions
• Market risk
• Savings institutions
• Credit unions
• Commercial banks
• Financial statements
• Financial markets and institutions
• Interest rates change
• Financial institutions exist
• Central banking
• Capital markets
• Money markets
• Interest rate fundamentals
• Interest rates
• Security valuation
• Federal reserve system
• Monetary policy
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Derivative securities markets
• Futures markets
• Commercial bank liabilities
• Regulation of commercial banks
• Deposit guarantee funds
• Insurance companies
• Life insurance companies
• Securities firms
• Investment banks
• Mutual funds
• Hedge funds
• Pension funds
• Private pension funds
• Managing credit risk
• Balance sheet
• Managing liquidity risk
• Managing interest rate risk
• Insolvency risk
• Managing risk
• Loan sales
• Managing risk off the balance sheet