金融工程名词解释英文版.docVIP

金融工程名词解释英文版 　　Terms in Financial Engineering 　　1. Derivatives: an instrument whose value depends on the values of other more basic underlying variables. It derives its value from the performance of the underlying asset. 　　2. Option:the right, but not the obligation, to buy (for a call option) or sell (for a put option) a specific amount of a given stock, commodity, currency, index, or debt, at a specified price (the strike price) during a specified period of time. 　　3. American Options: can be exercised at any time up to the expiration date. European Options: can be exercised only on the expiration date itself. 　　4. Forward Contract: an over-the-counter agreement between two parties, a buyer and a seller, that calls for the delivery of an asset at a future point in time with a price agreed upon today. 　　5. Long Party: the party agrees to buy. Short Party: sell. 　　6. Futures Contract:a forward contract that has standardized terms, is traded on an organized exchange, and follows a daily settlement procedure in which the losses of one party to the contract are paid to the other party. 　　7. Swap: an over-the-counter derivative in which two parties make a series of payments to each other at specific dates. 　　8. Financial Engineering: the notion that you can use a combination of assets and financial derivatives to construct cash flow streams that would otherwise be difficult or impossible to obtain. 　　9. Hedger: If someone bears an economic risk and uses derivative markets to reduce that risk, the person is a hedger. 　　10. Speculators: bet on the movement of the market to make windfall profits. Speculators attempt to profit from guessing the direction of the market. 　　11. Arbitrage: a type of transaction in which an investor seeks to make a riskless profit when the same good sells for two different prices. 　　12. Arbitrageurs: persons actively engaged in the arbitrage seeking out minor pricing discrepancies. 　　13. Offsetting: most traders close out a position prior to the