Brat-3: ACTR Students Community
Student Logo

Home - Login - Register - Help

Home - International Students Community
This is online community of international students studying in the USA.
The site where students help students to survive and thrive during their stay in America.
International Students Online



    AbroadPlanet Forums -> Brat-3: ACTR Students Community Post new topic
Author
Topic
09-Feb-2001 02:26 AM
 Re: Finance class for Yerkin, supported by Alina
yerkin
paryus'...

mozgi kipyat.

kak-to ne po sebe, ya tak i ne sdelal recursion.

Koroche za homework mne budet F-.

Elki.
[Brat 3: Delaware University I]

09-Feb-2001 05:18 AM
 Re: Finance class for Yerkin, supported by Alina
yerkin
Alright, kids, 1:20 am, but I'll finally prvide you with a legitimate response.

Picking on mistakes... these are definitely not typos, you can't blame your keyboard, Kiril.
...aquared -> acquired
...staff -> stuff
...scrap -> crap (it's better to use)

Kiril, aren't you getting too far? It's too advanced for me. And besides... I didn't understand a jack of what you said. Can you provide a clear definition for each of these:
- derivatives?
- forwards?
- futures?
- put options?
- call options?
- current yield?

Alina and Kiril, the two senseiZZZ )) I'm waiting for your next seminar. I hope it'll help my Corporate Finance class. Btw, have you studied the case of Butler Lumber (given out to Harvard Business School Students)?

Y
[Brat 3: Delaware University I]

10-Feb-2001 07:38 PM
 Re: Finance class for Yerkin, supported by Alina
Commander
Ok, Yerkin , you are so good in picking up my mistakes, that's wonderful, but actually i have to disappoint you with this, because i actually know how to write those words, but i don't have enough time to check up my typing - that's it.
Now defenitions.

Please try to understand those differences:

*** Derivative instrument - that's the financial vehicle that derives it's value from the underlaying securities. Let's say we have currency option, that's a financial instrument that derives it's value from the currency it' based on.

*** Forward contract - a type of derivative, that gives you an obligation to sell or to buy some financial assets (currency, or any other financial asset, like lets say stock or CD or bond whatever..) at beforehead specified quantity and specified price in future.. It means that you negotiate today about the temrs of trade with securities in future, and even if the price of those securities will change substantially you still should sell or buy those securities using price specified on your contract..

*** Future contracts - those are contracts which impose an obligation to sell or buy commodities or financial activities at specified price and quantity but in future, so almost the same as forward, but futures are far more liquid assets than forward, think about forward as a contract only between two parties, meanwhile future - contract between two partise, but it can be easely traded to other parties, so the main difference is that futures are easy traded on secondary market like stocks or bonds, while forwards are not. Moreover, prices on futures are set every day, while on fowards only once , during negotiating period...

*** Options - the right (not the OBLIGATION) to sell or to buy specific assets or commodities at specified price in specified quantities in future.
*Call option - the right to buy;
*Put option - the right to sell.

All the instruments described above are widely used for operations at modern financial market, and all of those are especially used to hedge the risk , thus to avoid the future fluctuations in price.
-----------------------------
Sincerely Kirill Zuykov.
[Brat 3: Delaware University I]

Posts: [1-8]    [9-11]
Community Moderators: Neo, LILKA
The time now is: Mon Nov 08:11 pm
Web development and hosting provided by Netimpulses.Com
This site is created by students for students.
Copyright © 2000-2002, Abroadplanet.Com. All rights reserved