金融衍生工具英文ppt.ppt

Swaps A swap is a contract between two parties under which they agree to exchange a series of payments according to a prearranged formula Types of swaps Interest swaps Current swaps An example of interest rate swaps $ $ Financial Derivatives 经管12级5班 柳雨舟 120160502 任运莉 120160503 孟泓伸 120160504 刘 鑫 120160505 three parts 1.The definition and risks of financial derivatives 2.The main four types of financial derivatives 3.The functions of financial derivatives the difinition of financial derivatives A derivative is a complicated financial contract that gets (derives) its value from an underlying asset. It is, at heart, an agreement between a buyer and a seller that says how much the price of the asset will change over a specific period of time. The underlying assets ?commodities, such as oil, gasoline or gold. ?currencies, especially the U.S. dollar. ?interest rates, such as the yield on the 10-year Treasury note. These assets can be, but do not have to be, owned by either party to the agreement. This makes derivatives much easier to trade than the asset itself. the history of financial derivatives 1.the first exchange for trading derivatives appeared to be the Royal Exchange in London,which permintted forward contract. 2.1600s-Holland. Tulip dealing is a big business, and growers and dealers are trading in options to guarantee the prices of tulips. ?.soon speculators are joining in and a thriving optiongs market is born. the history of financial derivatives 3.1934-USA. Investment act legitimises options, 300,000 contracts were in circulation by 1968. 4.April,1973.-Chicago. The CBOT starts trading listed call options with a first day volum of 911 contracts been done. 5.1974.-Chicago. The daily volum of options grows from 20,000 to over 200,000 contracts. Risks of Derivatives 1.The biggest risk is that its nearly impossible to know the true value of any derivative. Thats because its based on the value of another underlying asset, which can also be difficult to pr