Premium Essay

Lecture Note of Melbourne University

In:

Submitted By phoebelu
Words 2583
Pages 11
FNCE90011 Derivative Securities

Topic 1

Fundamentals
Topic Outline Basic Concepts Option Payoff and Profit Diagrams Miscellaneous Complicated Payoffs Appendix: Market Structure References Hull (8th edition) Chapters 1, 4.2, 5.2, 9, 11 Hull (7th edition) Chapters 1, 4.2, 5.2, 9, 11 Hull (6th edition) Chapters 1, 4.2, 5.2, 8, 10
Copyright © John C. Handley 2012.

1. BASIC CONCEPTS What is a derivative ? A derivative is an asset/security whose value is completely determined by the values of one or more other ("underlying" or "state") variables. In many cases the underlying variable is the price of a traded asset such as … stocks / shares stock index bonds / interest rates currencies commodities other derivatives And sometimes the underlying variable appears to be a bit “crazy” … such as in the case of weather derivatives
2

The derivatives market is the market where derivative securities are traded The four “big” classes of derivatives are: (i) forwards and futures Users Of Derivatives hedger already has an exposure to future movements in the price of the underlying asset and is interested in reducing risk eg: you own a share and you think the stock price will fall but you do not want to sell the share … what can you do ? (ii) options (iii) swaps (iv) credit derivatives

3

speculator wishes to take a position in the market i.e. to take on risk with a view to making a profit. Either he is betting that the asset price will go up or that it will go down eg: you think the stock price will increase but you do not want to buy the share … what can you do ?

arbitrageur arbitrage involves locking in a riskless profit by simultaneously entering into transactions in two or more markets

This means that derivatives may be used to increase risk or to decrease risk
4

Options A contractual agreement which gives one party the right but not the obligation to

Similar Documents

Free Essay

Referencing Guide Harvard

...2010 Edition 1 A GUIDE TO REFERENCING with examples in the Harvard style A GUIDE TO REFERENCING with examples in the Harvard style RMIT International University Vietnam 2010 Edition 1 Learning Skills Unit RMIT International University Vietnam 702 Nguyen Van Linh Blvd. District 7, HCMC, Vietnam Tel: +84 8 3776 1300 Fax: +84 8 3776 1399 Website: www.rmit.edu.vn Acknowledgements The following RMIT Vietnam lecturers and staff assisted with this project: Christopher Barker Christopher Leute David Feliz Dominic Mahon Robert Hollenbeck Oanh, Pham Thi Hoang Tin, Nguyen Minh Tri Thuy, Le Mong Thank you very much for giving so generously of your time. Robyn Keech Coordinator, Learning Skills Unit February 2010 A softcopy of this referencing guide is available on Blackboard. TABLE OF CONTENTS INTRODUCTION………………………………………………..…………….… 5 I. Which referencing style should I use?........................................................................... 5 II. Why must I cite and reference my sources?.................................................................. 5 III. What is plagiarism?........................................................................................................ 5 IV. Is there plagiarism in sources on the Internet?.............................................................. 6 V. What is paraphrasing?................................................................................................... 6 VI. What is summarising?........

Words: 20028 - Pages: 81

Premium Essay

Feduni-General-Guide-to-Referencing-2014

...General guide to referencing 2014 edition From the Deputy Vice-Chancellor (Learning and Quality) Many students find learning the unfamiliar nature of academic writing a challenging experience. The puzzling art of referencing is no exception, with its traditions and initially obscure formatting rules, referencing can seem to be an overwhelming and annoying requirement standing between you and submitting your assignment by the due date. This guide has been written especially for you, new and returning Federation University Australia (FedUni) students, to demystify referencing and provide numerous practical examples of when and how referencing should be used in your writing at FedUni. As you study, you’ll come to understand that referencing is just a set of rules that you need to follow to adequately acknowledge the work and thinking of others in your assignments. These rules are important because they allow your teachers to decide whether you’ve demonstrated that you understand the topic at hand and show that you have completed the assignment yourself. If you ignore the requirements to reference source materials in your assignment, your teacher may decide you have committed ‘plagiarism’. This means you have failed to reference according to the rules and in doing so, not demonstrated that you have used the work of others in your work. Plagiarism is a very serious matter that can result in unpleasant consequences for your studies and career. So please take the time to understand...

Words: 25550 - Pages: 103

Premium Essay

Business Research

...10 Why reference Most of the work you produce requires referencing to demonstrate that you have researched and considered the ideas of others in researching your topic or presenting your argument. Referencing is also necessary because it prevents you from ‘plagiarising’ which can lead to an automatic fail result. Plagiarism is using someone else’s thoughts, words or ideas and writing them as if they were your own. It is technically stealing and is a breach of ethics. Referencing tells the reader where the original idea can be found. What should be referenced? Anything that you have read or heard that has influenced your writing: • A concept or idea • A paraphrased quote • A direct quote • Personal communication • Class notes • Script or screenplay • A contestable argument General knowledge does not need to be referenced, for example: Canberra is the capital of Australia. But if you read that ‘The Yass – Canberra plains were chosen because of the snow in Dalgety …’ this would have to be referenced. A contestable argument that would need to be referenced may be: It is a fact that Lady Denman, rather than the Surveyor Scrivener actually proclaimed the name Canberra. In-text referencing This is a short notation within the essay, report or written answer, indicating where the source of the information or idea can be found. • • • Always include the author’s surname, the year of publication and the page number(s) if available. If there is no author...

Words: 2875 - Pages: 12

Premium Essay

Bussiness Law

...CAPABILITIES 4 LEARNING ACTIVITY SUMMARY 4 ASSESSMENT AND FEEDBACK SUMMARY 4 LEARNING RESOURCES 5 STUDENT FEEDBACK ON SUBJECT SURVEY 5 ACADEMIC INTEGRITY 5 Schedule of Learning Activities 6 Session Plan: 6 Learning Activity Details 7 Lectures: (Weeks 1-12) 7 Seminars: (Weeks 2-12) 7 Assessment and Feedback Details 8 Learning Resources 11 Readings 11 Academic Language and Learning Unit (ALLU) 11 Learning Management System (LMS) 11 Library 11 Student Support Services 12 Learning Summary 12 SUBJECT INTENDED LEARNING OUTCOMES (SILOS) 12 FACULTY GRADUATE CAPABILITIES (FGCs) 12 Make the most of this subject 13 Work consistently 13 Practise legal problem solving 13 Participate in all the learning activities 13 Lecture notes 13 Allow sufficient time for study 13 Become a member of a private study group 13 Policies, Procedures and Guidelines 14 Academic Integrity 14 Special Consideration 14 Extensions, Late Submissions and Penalties 14 Subject Details GENERAL DETAILS | Subject Code: | LST2BSL | Subject Title: | Introduction to Business Law | Teaching Period: | Semester 1, 2015 | Location(s): | Melbourne (Bundoora) and Dandenong | Credit Points: | 15 | Mode: | Blended (Online lectures and face-to-face seminars) | Level: | 2 | ENROLMENT REQUIREMENTS | Prerequisites: | This is a 2nd year...

Words: 5145 - Pages: 21

Premium Essay

Individual

...HARVARD Reference Style Guide Notes: Please "copy" the title of a book/an article/whatever (as far as the spelling of words such as "behavior"/"behavioral" are concerned (and this also goes for direct quotations) exactly as in the original. • • • When referring to any work that is NOT a journal, such as a book, article, or Web page, capitalise only the first letter of the first word of a title and subtitle, the first word after a colon or a dash in the title, and proper nouns. Do not capitalise the first letter of the second word in a hyphenated compound word. Capitalise all major words in journal titles. If within the same paragraph, reference is made to the same author(s) for a second and further time(s), the year of publication is omitted in the second and further references - as long as it does not lead to confusion. Multiple publications; same author • Same author; different years Normal conventions (author, year, title, etc). • Same author; same year More than one reference by an author in the same year: these are distinguished in order of publication using a lower-case alphabetical suffix after the year of publication (eg 1988a, 1988b, 1988c, etc). The same suffix is used to distinguish that reference for the in-text citations. Order of Listing The List of References is ordered alphabetically by primary authors' surnames. • Multiple authors. o Use the sequence of authors' surnames exactly as given in the publication. The primary author, ie, major contributor,...

Words: 4032 - Pages: 17

Premium Essay

Australian Legal System in Context

...AUSTRALIAN LEGAL SYSTEM IN CONTEXT BLB1101 Semester 1 2014 Table of contents Topic Page number Unit rationale and learning outcomes 3 Calendars – lectures and tutorial workshops 4 Tutorial workshop exercises 5-11 Assessment information 12-23 Assessment tasks 12 Part 1 – VCAT and Applied law 12 Part 2 – VCAT and Contextual analysis 13 Hypothetical Case Studies 15 • Residential Tenancies List 15 • Planning and Environment List 18 • Anti-Discrimination list 20 Assessment criteria 22 Reading guide 24-28 Su Robertson, Unit Coordinator su.robertson@vu.edu.au 9919 1823 Unit rationale BLB1101 Australian Legal System in Context: • Provides you with a working foundation in the technical structure of Australian legal systems, using applied practical teaching and learning methods; • Exposes you to ways of making sense of Australian legal systems in a legal academic way using the themes of economics, sustainability, race and gender; • Inducts you in the ways of the lawyer, including appropriate language use and structure, ethics and legal professional behaviour, using reflective, applied and theory-based teaching and learning methods. Learning outcomes Upon successful completion of BLB1101, you will: • Be able to identify and understand the components of Australian legal systems, how these components intersect and interact, and how lawyers use these systems; • Be able to identify and use the language...

Words: 9050 - Pages: 37

Premium Essay

Course Mba

... 2 Join a Global Learning Community Create a Successful Future with an MBA Program from RMIT Explore Your Study Options This brochure outlines programs offered by the Graduate School of Business and Law at RMIT’s City campus in Melbourne. Graduate School of Business and Law The Graduate School of Business and Law offers business management and law programs for business and non-business graduates. RMIT MBA programs are offered face-to-face at the Melbourne City campus, online through Open Universities Australia, and also at RMIT Vietnam. RMIT also offers global intensive study opportunities in Europe and Asia. No matter where or how you choose to study with RMIT, you will receive an internationally recognised qualification. Profile Looking to make the change from tennis coach to business leader, Nicholas Bartholomeusz chose to study an MBA to develop a solid understanding of business fundamentals. “RMIT’s program is tailored towards producing managers equipped with the skills to lead, so it was my first choice. Classes are designed to foster a range of learning styles and include plenty of both theory and application opportunities.” Nicholas Bartholomeusz (cover) Master of Business Administration (MBA) Which MBA Program? Most classes for Melbourne-based students are offered in either the award-winning Swanston Academic Building or the Emily McPherson College Building, which features the latest in multimedia technology, teaching and meeting spaces specially designed for collaborative...

Words: 5568 - Pages: 23

Premium Essay

Dell Trategic Planning

...HARVARD Reference Style Guide an g ro eh n sa y caxe )sno a ouq ...llllaniiiigiiiiro ehtt niiii sa yllllttcaxe )snoiiiittttattttouq . an g ro ehtt n sa y ttcaxe )sno a ouq an g ro eh n sa y caxe )sno a ouq cer d ro seog os a s h dna( denrecnoc era " aro vaheb" "ro vaheb" sa hcus sdrow o gn eps eh sa ra sa( reve ahw e c ra na koob a o e eh "ypoc" esae P se oN cer d ro seog os a s h dna( denrecnoc era " aro vaheb" "ro vaheb" sa hcus sdrow o gn eps eh sa ra sa( reve ahw e c ra na koob a o e eh "ypoc" esae P se oN ttttceriiiid roffff seog oslllla siiiihtttt dna( denrecnoc era "llllaroiiiivaheb"////"roiiiivaheb" sa hcus sdrow ffffo gniiiilllllllleps ehtttt sa raffff sa( revettttahw////ellllciiiittttra na////koob a ffffo ellllttttiiiitttt ehtttt "ypoc" esaellllP ::::settttoN cer d ro seog os a s h dna( denrecnoc era " aro vaheb" "ro vaheb" sa hcus sdrow o gn eps eh sa ra sa( reve ahw e c ra na koob a o e eh "ypoc" esae P se oN • • • • Order of Listing The List of References is ordered alphabetically by primary authors' surnames. • Multiple authors. o Use the sequence of authors' surnames exactly as given in the publication. The primary author, ie, major contributor, is listed first by the publisher. • Same author: o different years: list the author's references chronologically, starting with the earliest date. o same year: use an alphabetical suffix (eg 1983a, 1983b). Compiled by OpenJournals Publishing When referring to any work that is NOT a journal, such as a book, article...

Words: 4229 - Pages: 17

Premium Essay

Aple

...Harvard Referencing Guide Contents Acknowledging Sources................................................................................................................................................. 1 Variations in Referencing Styles within the Australian School of Business .......................................................................................................................................................................... 1 Using footnotes with in-text referencing How to Create a Reference List using a Harvard Style of Referencing ...................................................................... 1 Steps Involved in Referencing ....................................................................................................................................... 2 How to Cite References within the Text of an Assignment ......................................................................................... 2 Authors with the same surname and same publication year……………………………………………………………………2 Works with no author ........................................................................................................................................................ 3 Multiple authors ................................................................................................................................................................. 3 For a work that has more than three authors ....................................................................

Words: 6345 - Pages: 26

Premium Essay

Havard Referencing Guide

...Australian School of Business Harvard Referencing Guide Contents Acknowledging Sources................................................................................................................................................. 1 Variations in Referencing Styles within the Australian School of Business .......................................................................................................................................................................... 1 Using footnotes with in-text referencing How to Create a Reference List using a Harvard Style of Referencing ...................................................................... 1 Steps Involved in Referencing ....................................................................................................................................... 2 How to Cite References within the Text of an Assignment ......................................................................................... 2 Authors with the same surname and same publication year……………………………………………………………………2 Works with no author......................................................................................................................................................... 3 Multiple authors ................................................................................................................................................................. 3 For a work that has more than three authors ......................................

Words: 6349 - Pages: 26

Free Essay

Essay

...CCL Assignment – Problem solving Mengqi Sun ------------------------------------------------- 17636587 1. Issue There are basically 2 issues in this case shown as following: (i) Whether there is a legally binding contract between Wacko and the Darebin City Council? If there is, how much should Wacko claim for prize money? (ii) Is there a legal binding contract between Leecher and Darebin City Council? If there is, how much should Leecher claim for the prize money? 2. Principles (i) Offer An offer is a legally binding promise made by one party (the offeror) to another party (the offeree). Once offers have been accepted, offeror cannot revoke it. The advertisement Darebin City Council posted is an offer can be made to the world at large and is able to be accepted by anybody in the word. In other word, this advertisement is also a unilateral contract is a contract where the offeror makes an offer to the offeree in return for an act. Followings are examples of a unilateral contract which courts agreed. * Advertisement that amount to an offer made to the whole world at large; * Offers of rewards; (The major precedent is the R v Clarke case ) * Acceptance. (ii) Acceptance of the offer: The act of acceptance will occur when the offeree performs acts that are consistent with the terms of offer. Only when both parties have given their mutual consent does the law consider a binding legal contract to have been formed. Performance of an...

Words: 935 - Pages: 4

Premium Essay

Harvard Reference Guide

...The author–date (Harvard) style This chapter explains some of the more common applications of the author–date (Harvard) style of referencing. It is based on the Style manual for authors, editors and printers, 6th edn, 2002, pp. 188–208 and pp. 220–32. You should always check your unit guide and/or with academic staff (unit chair, lecturer or tutor) to make sure that this is the recommended style for your unit. Note that some units, courses and disciplines use variations of the style described here. You must reference all material you use from all sources and acknowledge your sources in the body of your paper each time you use a fact, a conclusion, an idea or a finding from someone’s work. This establishes the authority of your work and acknowledges the researchers and writers you have drawn upon in your paper. It is necessary to cite your sources each time you: • reproduce an author’s exact words (quote); that is, copy word for word directly from a text. Page numbers must be included in the in-text citation when quoting directly. • use your own wording (summarise or paraphrase) to explain or discuss what someone has said. Page numbers should be provided if the summarised or paraphrased material appears in specific pages or sections of a work. If you copy an entire table, chart, diagram or graph or if you take only some of the data contained in such sources, you must provide a reference. Sources such as journals, books, encyclopedias, computer programs and software, information...

Words: 3411 - Pages: 14

Free Essay

Amir

...based on the AGPS Style Manual (6th edn), 2002. It is advisable to check with each lecturer as to which variation they require you to use and to follow that advice for the work submitted to that lecturer. A referencing system is a standardised way of informing readers of the sources of information, ideas, graphics etc. that are used in any given work, e.g. your assignment. There are a number of different referencing systems, but those most commonly used at Flinders University are: • Harvard (an author-date system) • APA (American Psychological Association, also an author-date system) • The Note system (including footnotes and endnotes). Author-date systems use the authors’ surnames and the year of publication within the text of a work to refer to a detailed list of full references at the end of the work. The Note system uses numbers within the text to refer to details either at the bottom of the page (footnotes) or at the end of the work (endnotes). See the Student Learning Centre (SLC) brochures on the APA and Note systems for details on these systems. Referencing and academic integrity The use of a referencing system to acknowledge other people’s work, ideas and expression is integral to academic writing and academic integrity. See SLC leaflets on Academic Integrity or the 'Academic Integrity at Flinders' website (available from your topic listing in Flinders Learning Online). Referencing also shows readers: • that you have read widely • who and what you have read • how you have...

Words: 2227 - Pages: 9

Premium Essay

Mba Outline

...COURSE AND SUBJECT GUIDE POSTGRADUATE MANAGEMENT PROGRAMS 2010 The information contained in this Course and Subject Guide: • • is current only at the date it is published and Melbourne Business School is under no obligation to update the information or correct any inaccuracy which may become apparent at a later date; and is not intended to provide or make recommendation on which you should rely. Melbourne Business School reserves the right to change course content, lecturers, course time, examination procedures and other course details. To the extent permitted by law, Melbourne Business School specifically excludes any liability for any error or inaccuracy in, or omissions from, the information in this Guide and any loss or damage which you or any person may suffer. Last updated: 12 March 2010 1 2 MELBOURNE BUSINESS SCHOOL 2010 ACADEMIC CALENDAR ___________________________________________________________________ TERM 1 Thursday Monday Tuesday 14 January 18 January 26 January Orientation Evening – Weekend Mode and Standard Part Time World of Management Weekend Mode and Part Time (until Friday 22 January) Australia Day Academic School Holiday Carlton Campus on Sunday operations Monday Thursday Friday Monday Thursday Friday Friday Thursday Friday Sunday 9 February 18 February 26 February 8 March 18 March 19 March 2 April 15 April 16 April 25 April Commencement Term 1 Teaching (standard 12-week format subjects) Weekend Mode – Module 1a (until...

Words: 31716 - Pages: 127

Premium Essay

Business Information Systems

...Business | Course Code/ID: | BUMGT 1501 | Course Title: | Management Principles | Teaching Location: | Australian Technical and Management College, Melbourne campus | Semester: | Summer, 2014-15 | Prerequisite(s): | Nil | Corequisite(s): | Nil | Exclusion(s): | Nil | Credit Points/Progress Units: | 15 credit points. | ASCED Code: | 080301 | Adopted Reference Style APA 1 COURSE ORGANISATION 1.1 Student Responsibility It is the responsibility of every student to be aware of the requirements for this course, and understand the specific details included in this document. For full details of programs and school procedures, please refer to the University handbook (http://federation.edu.au/students/essential-info/publications/handbook) and Faculty Programs Handbooks available at http://federation.edu.au/faculties-and-schools/faculty-of-business/the-business-school/current-students Students should be aware of the content of the handbooks, particularly: * * Special Consideration process and forms * Assignment Coversheet * Submission of tasks and assignments * Grading codes * Appeal process * Unsatisfactory progress - Early Intervention 1.2 Staff The most appropriate contact is your teacher. If necessary they will contact the Course Coordinator at the University. | Lecturer | Tutor | Name: | Dr Maria Zenaida Mullin | | Phone: | | | Fax: | | | Email: | mmullin@atmc.vic.edu.au...

Words: 2408 - Pages: 10