Understanding the Financial Derivatives Instruments

2017 ◽  
pp. 110-124
Author(s):  
Cantürk Kayahan
Keyword(s):  
Financial Markets ◽  
Point Of View ◽  
2008 Financial Crisis ◽  
Futures Options ◽  
Financial Derivative ◽  
The 2008 Financial Crisis ◽  
And Performance ◽  
The Individual ◽  
Derivative Markets ◽  
Derivative Products

Today, core of the individual and institutional decisions are mainly finance and economics related thereby in today's world the most important success and performance indicators are financial results. Concepts which are called as change or innovation found themselves throughs derivative products in financial markets. Basically, the instruments that are known as forwards, futures, options and swaps have left their mark in last 20 years. However, after the 2008 financial crisis, these products have been labeled as toxic, complex or speculative and held solely responsible for the crisis. Whereas, first appearance of the derivative products was directed toward hedging and risk management. Therefore, objective of this study is to academically explain basic operating principles of financial derivative markets from conceptual and functioning point of view, to understand their places in world financial markets and to analyze their pricing examples. In this way, we aim to help students, academicians, and researchers make better assessment of derivative products.

Understanding the Financial Derivatives Instruments

2018 ◽  
pp. 45-59
Author(s):  
Cantürk Kayahan
Keyword(s):  
Financial Markets ◽  
Point Of View ◽  
2008 Financial Crisis ◽  
Futures Options ◽  
Financial Derivative ◽  
The 2008 Financial Crisis ◽  
And Performance ◽  
The Individual ◽  
Derivative Markets ◽  
Derivative Products

Today, core of the individual and institutional decisions are mainly finance and economics related thereby in today's world the most important success and performance indicators are financial results. Concepts which are called as change or innovation found themselves throughs derivative products in financial markets. Basically, the instruments that are known as forwards, futures, options and swaps have left their mark in last 20 years. However, after the 2008 financial crisis, these products have been labeled as toxic, complex or speculative and held solely responsible for the crisis. Whereas, first appearance of the derivative products was directed toward hedging and risk management. Therefore, objective of this study is to academically explain basic operating principles of financial derivative markets from conceptual and functioning point of view, to understand their places in world financial markets and to analyze their pricing examples. In this way, we aim to help students, academicians, and researchers make better assessment of derivative products.

Survey of Trading Systems for Individual Investors

2011 ◽  
pp. 157-176 ◽  
Author(s):  
M. Kersch ◽  
G. Schmidt
Keyword(s):  
Financial Markets ◽  
Stock Exchange ◽  
Point Of View ◽  
Individual Investors ◽  
Individual Investor ◽  
Trading System ◽  
Trading Systems ◽  
Trading Decisions ◽  
The Individual

Trading decisions in financial markets can be supported by the use of trading algorithms. To evaluate trading algorithms and to generate orders to be executed on the stock exchange trading systems are used. In this chapter, we define the individual investors’ requirements on a trading system, and analyze 17 trading systems from an individual investor’s point of view. The results of our study point out that the best alternative for an individual investor is not one single trading system, but a combination of two different classes of trading systems.

scholarly journals The impact of Covid-19 on international financial markets: winners and losers

2021 ◽  
Vol 7 (1) ◽  
pp. 53-75
Author(s):  
Gema Orihuel Bañuls
Keyword(s):  
Global Health ◽  
Financial Markets ◽  
World Economy ◽  
Stock Exchange ◽  
Economic Recovery ◽  
Specific Information ◽  
2008 Financial Crisis ◽  
The World ◽  
The 2008 Financial Crisis ◽  
The Impact

The pandemic caused by the SARS-Cov-2 (Covid-19) virus has triggered a worldwide impact on the economy that has been firstly reflected in the financial markets‘ performance. As a consequence of this global health emergency, the world economy is going to deal with its greatest threat since the 2008 Financial Crisis. However, the collapse and recovery of countries and industries are likely to be divergent. This paper aims to provide a global picture of different stock exchange indexes’ progress, including SP 500, Eurostoxx 50, IBEX 35 and CSI 300. In addition, components‘ performance of the Eurostoxx 50 have been analyzed in order to gather more specific information regarding the Covid-19 impact in different industries. Results have revealed that recovery in some of the stock markets are due to large corporation’s resilience and some winning sectors. As a result, the economic recovery is taking the form of a "K".

The counter-majoritarian difficulty in a neoliberal world: Socio-economic rights and deference in post-2008 austerity cases

2019 ◽  
Vol 8 (3) ◽  
pp. 605-638
Author(s):  
KÁRI HÓLMAR RAGNARSSON
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Capital ◽  
International Financial Institutions ◽  
2008 Financial Crisis ◽  
Economic Rights ◽  
Economic Context ◽  
German Sociologist ◽  
The 2008 Financial Crisis ◽  
Political Economic

Abstract:In the aftermath of the 2008 financial crisis courts and rights took a backseat to demands of markets and international financial institutions for austerity. Deference and judicial restraint were prevalent in austerity litigation across various European jurisdictions. This article argues that the traditional view of deference to political branches on socio-economic rights should be revised in our political-economic context. Drawing on the work of German sociologist Wolfgang Streeck on representation failures of democratic institutions in our neoliberal era, the article argues that law’s abnegation in this sphere has the effect of securing and legitimising neoliberal hegemony and serves the interests of owners of financial capital. Deference in order to avoid judicial overreach does not entail deference to democracy as legislatures have come to view financial markets as their constituency alongside the general citizenry. As public finances have become marketised, deference to legislatures amounts to deference to markets. Judicial minimalism creates not more democracy but a specific set of winners and losers. In light of severe representation failures where legislatures become tools of market justice we might, subject to various caveats, view a more active judicial role as democracy-enhancing and as a potential counterweight in favour of social justice.

scholarly journals CSR, LOCAL EMBEDDEDNESS AND THE PERFORMANCE OF MNCs IN BRAZIL DURING THE 2008 FINANCIAL CRISIS

2018 ◽  
Vol 21 (3-4) ◽  
pp. 25
Author(s):  
Henrique Correa da Cunha ◽  
Iara Regina Dos Santos Parisotto ◽  
Andreia Carpes Dani ◽  
Vilmar Siewert
Keyword(s):  
Financial Crisis ◽  
Multinational Companies ◽  
Foreign Markets ◽  
Causality Test ◽  
2008 Financial Crisis ◽  
Governance Practices ◽  
Local Embeddedness ◽  
Financial Crisis Of 2008 ◽  
The 2008 Financial Crisis ◽  
And Performance

Although the effects of the financial crisis of 2008 affected companies in several industries, not all organizations were affected in the same manner. When evaluating the implications of the 2008 financial crisis for the performance of multinational subsidiaries operating in Brazil during this period it is clear that some companies were better able to overcome the challenges imposed by the crisis. One explanation for that could be related to strategies adopted by these organizations that increase local embeddedness which in turn creates a reciprocal commitment between the company and the network in a sense that it provides a mutual support during challenging moments. In that sense, in order to relate to different stakeholders needs in foreign markets, the subsidiaries of multinational companies adopt CSR and governance practices. In order to verify the implications of CSR practices to the performance of multinational subsidiaries in Brazil during the financial crisis of 2008, the present study utilizes a panel data with 110 subsidiaries of multinational companies active in Brazil during 2008, 2009 and 2010. We perform a Pairwise Granger Causality test to confirm the causal relationship between CSR practices and performance. The results indicate that regardless of the size, there is a positive relationship between CSR and the performance of these organizations during the financial crisis of 2008.

Capturing Finance

2021 ◽  
Author(s):  
Carolyn Hardin
Keyword(s):  
Financial Markets ◽  
Everyday Life ◽  
Financial Institutions ◽  
Social Life ◽  
Retirement Income ◽  
2008 Financial Crisis ◽  
Financial Trading ◽  
Mortgage Backed Securities ◽  
The 2008 Financial Crisis ◽  
Financial Capitalism

Arbitrage—the trading practice that involves buying assets in one market at a cheap price and immediately selling them in another market for a profit—is fundamental to the practice of financial trading and economic understandings of how financial markets function. Because traders complete transactions quickly and use other people's money, arbitrage is considered to be riskless. Yet, despite the rhetoric of riskless trading, the arbitrage in mortgage-backed securities led to the 2008 financial crisis. In Capturing Finance Carolyn Hardin offers a new way of understanding arbitrage as a means for capturing value in financial capitalism. She shows how arbitrage relies on a system of abstract domination built around risk. The commonsense beliefs that taking on debt is necessary for affording everyday life and that investing is necessary to secure retirement income compel individuals to assume risk while financial institutions amass profits. Hardin insists that mitigating financial capitalism's worst consequences, such as perpetuating class and racial inequities, requires challenging the narratives that naturalize risk as a necessary element of financial capitalism as well as social life writ large.

Designing the Conceptual Flow Model from Csikszentmihalyi to Gurdjieff: The Mystic Revelations

2019 ◽  
Vol 11 (2) ◽  
Author(s):  
Soma Panja
Keyword(s):  
Flow Model ◽  
Point Of View ◽  
Interaction Point ◽  
Basic Premise ◽  
Energy Field ◽  
Performance Ability ◽  
And Performance ◽  
The Individual ◽  
Spiritual Work ◽  
The Universe

Flow as propounded by Csikszentmihalyi is an extraordinary phenomenon helping people maintaining all-encompassing performance ability often triggers curiosity of whether that particular phenomenon can be replicated time and again amongst all the humans. Well, the answer can be both a YES and a NO. In order to explore the phenomenon, we will explore the principles or laws of the universe and its functioning as propounded by Gurdjieff and draw assertions from the exploration to design applicable understanding in the nature of flow. The understanding of Gurdjieff was based on his search for the truth and the mysteries present within the mystic schools in the East. Much of the spiritual work is based on this basic premise that life propagates itself and the understanding of this phenomenon is self-evident to be propounded in the basic dogmatic revelations of the individual agenda. The fundamental truth about the expectation and reality dilemma about the performance scenario based on the interaction point of view with human and its capacities along with the environmental stimuli often brings around certain understanding about the capacities and performance ability in a certain environmental setup. This particular transcending phenomena and immersion and evolving in the process of working and making extraordinary revolutions in all the spheres of life has been a constant curious case to be solved and debated with the help of yoga, Zen, science, religion, mysticism, and occult culminating from various forms of old age and new age philosophical dimensions engulfed into the spiritual underpinnings. Transcending above one's own physical boundaries to take into to the cosmic vibrations and inculcate the energy field within one's own boundaries helping them to perform and replicate things in finest creativity levels often motivates to explore these phenomena into further details.

On The Risk-Return Relationship in European and MENA Major Stock Markets During the 2008 Financial Crisis

2016 ◽  
pp. 252-264
Author(s):  
Salim Lahmiri ◽  
Stephane Gagnon
Keyword(s):  
Financial Crisis ◽  
Financial Markets ◽  
Stock Markets ◽  
Mena Region ◽  
2008 Financial Crisis ◽  
Risk Return ◽  
Show Evidence ◽  
The 2008 Financial Crisis ◽  
European Stock Markets ◽  
The Relationship

The purpose of this study is to examine the relationship between risk and return in financial markets. In particular, a comparative study is conducted to shed light on such association by using stock market data from Middle East and North Africa (MENA) and Europe. The exponential generalized autoregressive conditionally heteroskedastic in the mean (EGARCH-M) methodology is adopted to investigate the return generating process in financial markets under study during the 2008 financial crisis. Empirical findings show evidence that some MENA region financial markets generated more risk reward than European stock markets.

scholarly journals Individualistic Vikings: Culture, Economics and Iceland

2015 ◽  
Vol 11 (2) ◽  
pp. 355 ◽  
Author(s):  
Már Wolfgang Mixa ◽  
Vlad Vaiman
Keyword(s):  
Financial Crisis ◽  
Financial Stability ◽  
Explanatory Power ◽  
Banking System ◽  
Economic Behavior ◽  
Point Of View ◽  
Cultural Dimension ◽  
The 2008 Financial Crisis ◽  
The Individual ◽  
High Level

Icelandic culture has generally been considered to share many similarities to the Nordic cultures. However, the financial crisis in 2008 painted a completely different picture, with the Nordic nations faring much less worse than Iceland, which saw its banking system becoming almost entirely worthless. Looking at traditional cultural yardsticks in the vein of the most commonly used research in the field of business and organizational management, generally linked to Hofstede´s dimensional studies, one would at first glance conclude that Icelanders would have behaved in a similar manner as people in the Nordic nations. By focusing on savings ratio, it is shown that Icelanders were much more risk-seeking during the prelude of the crisis. Many nations badly hit during the 2008 financial crisis have a high level of individualism inherent in their culture. Iceland fits this scenario. Thus while general cultural characteristics may lack explanatory power regarding economic behavior of people between cultures, the individual/collective cultural dimension may provide clues of what dangers (and possible strengths) lurk within societies from a financial point of view. Such developments may affect the financial stability of nations, especially those with a high level of individualism where financial liberalization with possible abuses is occurring.

Sign in / Sign up

Export Citation Format

Share Document