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The Derivatives FUTURES AND FORWARDS SKOOL COMPUTER EDUCATION
COMPOUNDING ISSUES ,[object Object],[object Object],[object Object]
COMPOUNDING ISSUES
COMPOUNDING ISSUES
SHORT SELLING ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SHORT SELLING ,[object Object],[object Object],[object Object],[object Object],[object Object]
THE FORWARD PRICE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
THE FORWARD PRICE
THE FORWARD PRICE
THE FORWARD PRICE
COUPONS, DIVIDENDS & FX FORWARDS ,[object Object],[object Object]
COUPONS, DIVIDENDS & FX FORWARDS
COUPONS, DIVIDENDS & FX FORWARDS
FORWARDS VS FUTURES ,[object Object],[object Object],[object Object],[object Object]
EXAMPLE-001 SPOT-INTEREST CORRELATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STOCK INDEX FUTURES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STOCK INDEX FUTURES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
HEDGING USING INDEX FUTURES
HEDGING USING INDEX FUTURES
PERFECT HEDGE ,[object Object],[object Object],[object Object],[object Object]
EXAMPLE PERFECT HEDGE ,[object Object],[object Object],[object Object]
EXAMPLE PERFECT HEDGE ,[object Object],The total income of the company over these two months due to the shorting of the futures is therefore
EXAMPLE PERFECT HEDGE ,[object Object],[object Object]
COST OF CARRY ,[object Object],[object Object],[object Object]
COST OF CARRY ,[object Object],[object Object]
FUTURES PRICES AND  FUTURE SPOT PRICES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],a riskless investment will grow in value with the risk free rate of return
EXAMPLE -FUTURES RISK ,[object Object],[object Object]
EXAMPLE -FUTURES RISK ,[object Object],[object Object],[object Object],It is straightforward to observe that the relationship of the futures with the expected spot price will depend on the relationship between the two returns, which in turn depends on the correlation of the  Investment with the market due to the CAPM.

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003 Futures And Forwards