Textbook Notes (369,067)
United States (206,185)
Economics (193)
ECON 351 (21)
Chapter 7

Chapter 7_Derivatives and Derivative Markets.docx

1 Page
61 Views

Department
Economics
Course Code
ECON 351
Professor
Frank Sorokach

This preview shows half of the first page. Sign up to view the full page of the document.
Description
Chapter 7: Derivatives and Derivative Markets  Forward and Future contracts in Foreign Exchange - Forward Transactions – traders agree today to a forward contract to exchange currencies or bank deposits at a specific future date at an exchange rate known as the forward rate. 1. Forward Contract - private agreements among traders to exchange any amount of currency on any future date. 2. Future Contract – traded on exchanges such as CBOT and price changes continually as contracts are bought and sold on the exchange  OPTIONS - Option – a type of derivative contract in which the buyer has the right to buy or sell the underlying asset at a set price during a set period of time - Option Premium – the price of an option - Strike Price or Exercise Price – the price at which the buyer of an option has the right to buy or sell the underlying asset - Put Option – a type of derivative contract that gives the buyer the right to sell the underlying asset at a set price during a set period of time • American Options – an
More Less
Unlock Document

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit