ิerivatives are financial instrumen

ิerivatives are financial instruments with values that change relative to underlying
variables, such as assets, events, or prices. In other words, the value of derivatives is based
on the change in value of something else, called the underlying trade or exchange.
The main types of derivatives are futures, forwards, options, and swaps. A futures
contract is an agreement to buy or sell a set quantity of something at a set
rate at a predetermined point in the future. The date on which this exchange
is scheduled to take place is called the delivery, or settlement, date. Futures
contracts are often associated with buyers and sellers of commodities who
are concerned about supply, demand, and changes in prices. They can be
traded only on exchanges. Almost any commodity, such as oil, gold, corn, or
soybeans, can have a futures contract defined for a specific trade.
Forwards are similar to futures, except they can be traded between two
individuals. A forward contract is a commitment to trade a specified item at
a specific price in the future. The forward contract takes whatever form to
which the parties agree.
An option is a less binding form of derivative. It conveys the right, but not
the obligation, to buy or sell a particular asset in the future. A call option gives
the investor the right to buy at a set price on delivery day. A put option gives
the investor the option to sell a good or financial instrument at a set price on the settlement
date. It is a financial contract with what is called a long position, giving the owner the right
but not the obligation to sell an amount at a preset price and maturity date.
Finally, swaps live up to their name. A swap can occur when two parties agree to
exchange one stream of cash flows against another one. Swaps can be used to hedge risks
such as changes in interest rates, or to speculate on the changing prices of commodities
or currencies. Swaps can be difficult to understand, so here is an example. JP Morgan
developed CDSs that bundled together as many as 300 different assets, including subprime
loans. Credit default swaps were meant as a form of insurance. In other words, securities
were bundled into one financial package, and companies such as JP Morgan were essentially
paying insurance premiums to the investors who purchased them, who were now on the
hook if payments of any of the securities included in the CDSs did not come through.
As mentioned before, the value of derivatives is based on different types of underlying
values, including assets such as commodities, equities (stocks), bonds, interest rates,
exchange rates, or indexes such as a stock market index, consumer price index (CPI), or
Th e value of
derivatives
is based on
diff erent types
of underlying
values
Case 10: Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives 399
even an index of weather conditions. For example, a farmer and a grain storage business
enter into a futures contract to exchange cash for grain at some future point. Both parties
have reduced a future risk. For the farmer it is the uncertainty of the future grain price, and
for the grain storage business it is the availability of the grain at a predetermined price.
Some believe derivatives lead to market volatility because enormous amounts of
money are controlled by relatively small amounts of margin or option premiums. The
job of a derivatives trader is something like a bookie taking bets on how people will bet.
Arbitrage is defined as attempting to profit by exploiting price differences of identical
or similar financial instruments, on different markets, or in different forms. As a result,
derivatives can suffer large losses or returns from small movements in the underlying
asset’s price. Investors are like gamblers in that they can bet for or against the price (going
up or down) and can consequently lose or win large amounts.

ผลลัพธ์ (อังกฤษ) 1:

Financial instruments are erivatives ิ with values that change relative to underlying.variables, such as assets, events, or prices. In other words, the value of derivatives is basedon the change in value of something else, called the underlying trade or exchange.The main types of derivatives are futures, forwards, options, and swaps. A futurescontract is an agreement to buy or sell a set quantity of something at a setrate at a predetermined point in the future. The date on which this exchangeis scheduled to take place is called the delivery, or settlement, date. Futurescontracts are often associated with buyers and sellers of commodities whoare concerned about supply, demand, and changes in prices. They can betraded only on exchanges. Almost any commodity, such as oil, gold, corn, orsoybeans, can have a futures contract defined for a specific trade.Forwards are similar to futures, except they can be traded between twoindividuals. A forward contract is a commitment to trade a specified item ata specific price in the future. The forward contract takes whatever form towhich the parties agree.An option is a less binding form of derivative. It conveys the right, but notthe obligation, to buy or sell a particular asset in the future. A call option givesthe investor the right to buy at a set price on delivery day. A put option givesthe investor the option to sell a good or financial instrument at a set price on the settlementdate. It is a financial contract with what is called a long position, giving the owner the rightbut not the obligation to sell an amount at a preset price and maturity date.Finally, swaps live up to their name. A swap can occur when two parties agree toexchange one stream of cash flows against another one. Swaps can be used to hedge riskssuch as changes in interest rates, or to speculate on the changing prices of commoditiesor currencies. Swaps can be difficult to understand, so here is an example. JP Morgandeveloped CDSs that bundled together as many as 300 different assets, including subprimeloans. Credit default swaps were meant as a form of insurance. In other words, securitieswere bundled into one financial package, and companies such as JP Morgan were essentiallypaying insurance premiums to the investors who purchased them, who were now on thehook if payments of any of the securities included in the CDSs did not come through.As mentioned before, the value of derivatives is based on different types of underlyingvalues, including assets such as commodities, equities (stocks), bonds, interest rates,exchange rates, or indexes such as a stock market index, consumer price index (CPI), orTh e value ofderivativesis based ondiff erent typesof underlyingvaluesCase 10: Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives 399even an index of weather conditions. For example, a farmer and a grain storage businessenter into a futures contract to exchange cash for grain at some future point. Both partieshave reduced a future risk. For the farmer it is the uncertainty of the future grain price, andfor the grain storage business it is the availability of the grain at a predetermined price.Some believe derivatives lead to market volatility because enormous amounts ofmoney are controlled by relatively small amounts of margin or option premiums. Thejob of a derivatives trader is something like a bookie taking bets on how people will bet.Arbitrage is defined as attempting to profit by exploiting price differences of identicalor similar financial instruments, on different markets, or in different forms. As a result,derivatives can suffer large losses or returns from small movements in the underlyingasset's price. Investors are like gamblers in that they can bet for or against the price (goingup or down) and can consequently lose or win large amounts.

ผลลัพธ์ (อังกฤษ) 2:

Hotels Erivatives are Financial Instruments with values ​​that Change relative to underlying.
variables, Such As assets, events, or prices. In Other Words, The value of Derivatives is based.
on The Change in value of Something Else, Called The underlying Trade or Exchange.
The main types of Derivatives are futures, Forwards, options, and swaps. A futures.
contract is an Agreement to Buy or sell a Set Quantity of Something at a Set.
rate at a predetermined Point in The Future. The Date on which this Exchange.
is scheduled to Take Place is Called The delivery, or Settlement, Date. Futures.
contracts are often Associated with Buyers and Sellers of Commodities Who.
are Concerned About Supply, demand, and Changes in prices. They Can be.
traded only on Exchanges. Almost any Commodity, Such As. Oil, Gold, Corn, or.
soybeans, Can Have a futures contract defined for a Specific Trade.
Forwards are similar to futures, except they Can be traded between Two.
Individuals. A Forward contract is a commitment to Trade a specified Item at.
a Specific Price in The Future. The Forward contract Takes Whatever Form to.
which The Parties Agree.
An Option is a less binding Form of derivative. It conveys The Right, but Not.
The Obligation, to Buy or sell a particular Asset in The Future. A call Option. gives
The Investor The Right to Buy at a Set Price on delivery Day. A Put Option gives.
The Investor The Option to sell a good or Financial instrument at a Set Price on The Settlement.
Date. It is a Financial contract with What is Called a long. position, giving The Owner The Right.
but Not The Obligation to sell an amount at a Preset Price and Maturity Date.
Finally, swaps Live up to their name. A Swap Can occur When Two Parties Agree to.
Exchange One Stream of Cash flows Against another One. . Swaps Can be Used to Hedge risks.
Such As Changes in interest Rates, or to speculate on The Changing prices of Commodities.
or currencies. Swaps Can be Difficult to Understand, So here is an example. JP Morgan.
developed CDSs that bundled Together As many As. 300 different assets, including subprime
loans. Credit Default swaps were meant As a Form of Insurance. In Other Words, Securities.
were bundled Into One Financial Package, and companies Such As JP Morgan were essentially.
paying Insurance Premiums to The Investors Who Purchased them, Who. were now on The
Hook IF Payments of any of The Securities Included in The CDSs did Not Come Through.
As mentioned Before, The value of Derivatives is based on different types of underlying.
values, including assets Such As Commodities, EQUITIES (Stocks), Bonds. , interest Rates,
Exchange Rates, or indexes Such As a Stock market index, Consumer Price index (CPI), or.
Th E value of
Derivatives
is based on
diff erent types
of underlying
values
​​Case 10: Banking Industry Meltdown: The Ethical and Financial Risks. of Derivatives 399
Even an index of weather conditions. For example, a Farmer and a Grain Storage business.
enter Into a futures contract to Exchange Cash for Grain at some Future Point. Both Parties.
Have reduced a Future risk. For The Farmer it is The uncertainty. of The Future Grain Price, and.
for The Grain Storage business it is The availability of The Grain at a predetermined Price.
Mostly Believe Derivatives Lead to market volatility Because enormous amounts of.
Money are controlled by relatively Small amounts of margin or Option Premiums. The.
Job of a Derivatives Trader is Something like a bookie Taking Bets on How People Will Bet.
Arbitrage is defined As attempting to profit by exploiting Price Differences of identical.
or similar Financial Instruments, on different markets, or in different forms. As a Result,.
Derivatives Can Returns from Small or Large suffer losses The underlying Movements in.
Asset's Price. Investors are like gamblers in that they Can Bet for or Against The Price (Going.
up or down) and consequently Can Win or Lose Large amounts.

ผลลัพธ์ (อังกฤษ) 3:

It erivatives are financial instruments with values that change relative to underlying
variables such as, assets events,,, Or prices. In, other words the value of derivatives is based
on the change in value of something else called the, underlying. Trade or exchange.
The main types of derivatives are futures forwards options and,,, swaps. A futures
.Contract is an agreement to buy or sell a set quantity of something at a set
rate at a predetermined point in the, future. The date on which this exchange
is scheduled to take place is called the delivery, or settlement, date. Futures
contracts. Are often associated with buyers and sellers of commodities who
are concerned, about supply demand and changes, in prices.? They can be
.Traded only on exchanges. Almost any commodity such as oil,,,, gold corn or
soybeans can have, a futures contract defined. For a specific trade.
Forwards are similar, to futures except they can be traded between two
individuals. A forward contract. Is a commitment to trade a specified item at
a specific price in the future. The forward contract takes whatever form to
which. The parties agree.
.An option is a less binding form of derivative. It conveys, the right but not
the obligation to buy, or sell a particular. Asset in the future. A call option gives
the investor the right to buy at a set price on delivery day. A put option gives
the. Investor the option to sell a good or financial instrument at a set price on the settlement
date.It is a financial contract with what is called a, long position giving the owner the right
but not the obligation to sell. An amount at a preset price and maturity date.
Finally swaps live, up to their name. A swap can occur when two parties agree. To
exchange one stream of cash flows against another one. Swaps can be used to hedge risks
such as changes in, interest ratesOr to speculate on the changing prices of commodities
or currencies. Swaps can be difficult, to understand so here is. An example. JP Morgan
developed CDSs that bundled together as many as 300, different assets including subprime
loans. Credit. Default swaps were meant as a form of insurance. In, other words securities
were bundled into one, financial packageAnd companies such as JP Morgan were essentially
paying insurance premiums to the investors who purchased them who were,, Now on the
hook if payments of any of the securities included in the CDSs did not come through.
As, mentioned before the. Value of derivatives is based on different types of underlying
values including assets, such, as commodities equities (stocks),. ,, bonds interest rates
.Exchange rates or indexes, such as a stock, market index consumer price index (CPI), or
Th e value of

is derivatives based. On
diff erent types of underlying


values Case 10: Banking Industry Meltdown: The Ethical and Financial Risks of Derivatives. 399
even an index of weather conditions. For example a farmer, and a grain storage business
.Enter into a futures contract to exchange cash for grain at some future point. Both parties
have reduced a future, risk. For the farmer it is the uncertainty of the future, grain price and
for the grain storage business it is the availability. Of the grain at a predetermined price.
Some believe derivatives lead to market volatility because enormous amounts of
.Money are controlled by relatively small amounts of margin or option premiums. The
job of a derivatives trader is something. Like a bookie taking bets on how people will bet.
Arbitrage is defined as attempting to profit by exploiting price differences. Of identical
or similar financial instruments on markets or, different, in different forms. As, a result
.Derivatives can suffer large losses or returns from small movements in the underlying
asset 's price. Investors are like. Gamblers in that they can bet for or against the price (going
up or down) and can consequently lose or win large amounts.