Offshore Derivative Instruments: Focusing on Participatory Notes

2013 ◽  
Author(s):  
Abhinav Prakash ◽  
NIket Anand ◽  
Nilesh Chaudhary ◽  
Prahelika Dhalia
Keyword(s):  
Derivative Instruments

Real-Estate Derivative Instruments

2017 ◽  
Author(s):  
Radu S. Tunaru
Keyword(s):  
Real Estate ◽  
Put Options ◽  
Derivative Instruments ◽  
Market Practices ◽  
Total Return Swaps

This chapter is dedicated to the innovation of real-estate derivatives, with a focus on vanilla products such as forwards/futures, total return swaps, and European call and put options. A description is given of the mechanics behind these instruments and their range of applications. The examples provided here highlight changes in market quotation agreements and standard market practices related to valuation of vanilla real-estate derivatives such as forwards, futures, and total return swaps. In addition, MacroShares, PICs, PIFs, and PINs are discussed.

scholarly journals A Volatility Estimator of Stock Market Indices Based on the Intrinsic Entropy Model

Entropy ◽  
2021 ◽  
Vol 23 (4) ◽  
pp. 484
Author(s):  
Claudiu Vințe ◽  
Marcel Ausloos ◽  
Titus Felix Furtună
Keyword(s):  
Stock Market ◽  
Time Frame ◽  
Data Sets ◽  
Entropy Model ◽  
Daily Data ◽  
Volatility Models ◽  
Derivative Instruments ◽  
Securities Industry ◽  
Time Frames ◽  
Financial Securities

Grasping the historical volatility of stock market indices and accurately estimating are two of the major focuses of those involved in the financial securities industry and derivative instruments pricing. This paper presents the results of employing the intrinsic entropy model as a substitute for estimating the volatility of stock market indices. Diverging from the widely used volatility models that take into account only the elements related to the traded prices, namely the open, high, low, and close prices of a trading day (OHLC), the intrinsic entropy model takes into account the traded volumes during the considered time frame as well. We adjust the intraday intrinsic entropy model that we introduced earlier for exchange-traded securities in order to connect daily OHLC prices with the ratio of the corresponding daily volume to the overall volume traded in the considered period. The intrinsic entropy model conceptualizes this ratio as entropic probability or market credence assigned to the corresponding price level. The intrinsic entropy is computed using historical daily data for traded market indices (S&P 500, Dow 30, NYSE Composite, NASDAQ Composite, Nikkei 225, and Hang Seng Index). We compare the results produced by the intrinsic entropy model with the volatility estimates obtained for the same data sets using widely employed industry volatility estimators. The intrinsic entropy model proves to consistently deliver reliable estimates for various time frames while showing peculiarly high values for the coefficient of variation, with the estimates falling in a significantly lower interval range compared with those provided by the other advanced volatility estimators.

Liberalism and Regulation of Financial Market

2012 ◽  
pp. 20-30
Author(s):  
V. Milovidov
Keyword(s):  
Hedge Funds ◽  
Financial Services ◽  
Financial Stability ◽  
Financial Risk ◽  
Risk Hedging ◽  
Rights Protection ◽  
Starting Point ◽  
Derivative Instruments ◽  
Credit Default ◽  
Financial Transactions

Reagan's financial sector deregulation became a starting point for the financial engineering, derivatives, combinatory financial operations industry. Due to it hedge funds developed, and a range of risk financial transactions expanded among the banks that found both new forms of financial risk hedging and new sources of income: arbitrage and hedging, credit default swaps, operations with "second-rate” credits. It was them that exploded the market in 2007–2008. The reaction of states realized in a string of regulation initiatives, including creation of supranational coordination bodies (in particular, Financial Stability Board); reformatting of mega regulators and on their base – the shaping of state prudential supervision and financial services consumer rights protection bodies with different tasks; restrictions on hedge funds activities; toughening of derivative instruments regulation and implementing of a central counterparty institute on derivatives market.

scholarly journals Mutual fund investors perception in India-a study

2017 ◽  
Vol 7 (1.1) ◽  
pp. 60
Author(s):  
R. Udhayasankar ◽  
K. Maran
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Financial Risk ◽  
Fund Raising ◽  
Factors Affecting ◽  
Derivative Instruments ◽  
Different Types ◽  
Small Investors ◽  
Investment Option ◽  
Short Span

Mutual fund is four decades old in India.  It was started by UTI during the year 1964 with few schemes for small investors. During this short span of time it has made tremendous growth in Indian small investors. But now a day’s its volume of investors and sources of investment also growing tremendous level. Moreover mutual fund scheme have added new dimension to overcome financial risk of small investors and also in fund raising capacity of corporate sectors. Mutual fund investors can diversify even more by purchasing different kind of stocks which will helps to spreading out investors’ money across different types of derivative instruments and hence it reduces the risk tremendously up to certain extent and it is automatically diversify in a predetermined category of investments. This serves bridge work between small investors and corporate sectors likewise considering those points in this paper is an attempt to know the investors’ perceptions towards selected mutual funds. This paper makes an attempt to identify various factors affecting perception of investors regarding investment in mutual funds. The findings will helpful to identify the investors’ interest base and factors clearly and it reveals that the investors consider mutual funds as flexible investment option and it creates interest of investment among small investors.

scholarly journals The effect of procurement strategies of milling companies on the price of maize

2009 ◽  
Vol 6 (3) ◽  
pp. 147-157
Author(s):  
Willem Rossouw ◽  
Jacobus Young
Keyword(s):  
Well Being ◽  
Price Risk ◽  
Direct Impact ◽  
South Africans ◽  
Futures Options ◽  
Price Increases ◽  
The Poor ◽  
Derivative Instruments ◽  
Procurement Strategies ◽  
Price Risk Management

Since ultra-poor South Africans spend up to a fifth of their income on maize alone, the demand for this commodity is price-inelastic, i.e. consumers have no choice but to absorb price increases. As such the success of procurement strategies from milling companies will ultimately have a direct impact on the financial well-being of the poor. Even though derivative instruments are available to use as counter against market fluctuations, the price risk management success of groups with a concern on SAFEX suggests that this is not achieved as yet, ultimately to the detriment of consumers. The view exists that markets are efficient and the return offered by the futures exchange cannot consistently be outperformed. This paper argues the exact opposite, since the use of the proposed futures/options strategies result in returns superior to that of the market.

scholarly journals Analysing the Sway of Cash Instruments in the Indian Financial Market Context

2021 ◽  
Vol 10 (06) ◽  
pp. 01-04
Author(s):  
Bhumi Mehta
Keyword(s):  
Financial Market ◽  
Financial Instruments ◽  
Financial Instrument ◽  
Legal Documents ◽  
Financial Innovations ◽  
Monetary Value ◽  
Financial Products ◽  
Derivative Instruments ◽  
Different Types ◽  
Bill Of Exchange

There are basically four types of financial instruments viz. a bank deposit, a bill of exchange, a bond, and equity. As a result of a steady stream of financial innovations in today’s time, the market landscape is far less sparse-and far more complex to evaluate. Financial instruments are termed as the financial products which are tradable as packages of capital, each having their own unique characteristics and structure. The wide collection of financial instruments in today's marketplace allows for the efficient flow of capital amongst the world's investors. Financial instruments are legal documents that embody monetary value. There are a number of different types of documents that are properly identified as a financial instrument. There are different types of financial instrument, like cash instruments or derivative instruments.

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