Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index fu...Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index futures was established. It is a differential equation, its solution shows that the relation between time and price forms a logarithmic circle. If the time is thought of as the probability of its corresponding price, then such a relation is perfectly coincided with the main assumption of the famous formula of option pricing, based on statistical theory, established by Black and Scholes, winner of 1997 Nobel’ prize on economy. In that formula, the probability of price of basic assets (they stand for index futures here) is assummed to be a logarithmic normal distribution. This agreement shows that the same result may be obtained by two analytic methods with different bases. However, the result, given by assumption by Black_Scholes, is derived from the solution of the differential equation.展开更多
It’s known to all that under ideal condition the s to rage cost is kept in lower level when storage management be arranged by Economic Order Quantity(EOQ).Does this mean that any companies should set up their own sto...It’s known to all that under ideal condition the s to rage cost is kept in lower level when storage management be arranged by Economic Order Quantity(EOQ).Does this mean that any companies should set up their own storing system in proportion to the scale of the commodities’ producing or sell ing Furthermore, even if they manage storage in EOQ, because of different oper ation scale, geographical condition or ability borrowing money from financial ma rket, different companies pay unequal cost in storing the same commodity.In thi s paper, except for supplying commodities from our own storage system, the autho rs have analyzed other two supplying ways without whole storage system, they are forward contracts and futures contracts.The authors have discussed variable su pply cost for above different supply measures.According to the cost of each sup ply way, the managers can choose the most economical way in supplying the commod ity and predict the price of futures from storage management arranged by EOQ.Th e summary content is as follow: 1. The comparing of supply cost between forward contracts and storing system a rranged by EOQ. (1) The supply cost from forward contracts (2) The supply cost from storage system arranged by Economic Order Quantity (3) The application example for comparing cost in different supply way 2.The comparing of supply cost between futures going physical and storing syst em arranged by Economic Order Quantity. (1) The supply cost from futures going physical (2) The correlation between futures contracts and storage management arranged b y EOQ (3) The application example for comparing cost in different supply way 3.How does storing system of scale economic affect the price of forward and fu tures contracts (1) How does the price of forward and futures contracts fluctuate (2) How do we calculate the price of a commodity at future point from the cost of scale economic storing (3) How do we operate efficiently in derivatives market by using the cost of sc ale economic storing (4) The application example for analyzing the price of futures 4.The correlation among storage managementforward contracts and futures mark et.展开更多
Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index fu...Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index futures was established. It is a differential equation, its solution shows that the relation between time and price forms a logarithmic circle. If the time is thought of as the probability of its corresponding price, then such a relation is perfectly coincided with the main assumption of the famous formula of option pricing, based on statistical theory, established by Black and Scholes winner of 1997 Nobel' prize on economy. In that formula, the probability of price of basic assets (they stand for index futures here) is assummed to be a logarithmic normal distribution. This agreement shows that the same result may be obtained by two analytic methods with different bases. However, the result, given by assumption by Black-Scholes, is derived from the solution of the differential equation.展开更多
First of all, this paper explores monetary perspectives of Keynes and Friedman. Secondly, it explores financial derivative system in global economy. Thirdly, this study explores world money notion of M. Keynes. Keynes...First of all, this paper explores monetary perspectives of Keynes and Friedman. Secondly, it explores financial derivative system in global economy. Thirdly, this study explores world money notion of M. Keynes. Keynes presented world money concept in 1944, in Bretton Woods Talk. His notion may be applied through global GDP today. Assumption of this study is that world money may finance debt payment of nations, and it finances balanced payment deficit of economies, because capitalism of modem economy requires money to run business system. Uysal （2016） presented World money Notion and 2008 Process in conference of 1 lth International Silkroad in Tbilisi, Georgia. Uysal （2015, 2016） discussed World Money concept in the conference with assumption that it may increase demand in global economy. This study is based on case study, which is 2008 Global Crise. Because its effect continues worldwide.展开更多
Motivated by the accounting events of firm＇s default related to derivatives and other financial instruments transactions, this study is aimed to investigate the capability of accounting information to signal the risk...Motivated by the accounting events of firm＇s default related to derivatives and other financial instruments transactions, this study is aimed to investigate the capability of accounting information to signal the risks associated with the use of financial derivatives for hedging. Hypothesis are developed based on the theory and empirical evidences of manager＇s motive to use derivatives for hedging （Berkman ＆ Bradbury, 1968; Dune, et al., 2003） as well as signaling theory of accounting information （Ball ＆ Brown, 1968; Beaver ＆ Dukes, 1972; Jensen ＆ Meckling, 1976; Megginson, 1997）. The hypotheses are formulated in the Ordinary Least Square model. The study uses Statistical Product and Service Solutions （SPSS） version 14 as software to conduct the statistical tests. Non-bank and non-financial institutions firms with financial derivatives transactions listed in Indonesian Stock Exchange during 2001 to 2006 are chosen as the sample. Determinations of the time frame has considered the timing of introduction of revisions of accounting standard on derivatives and other financial instruments in Indonesia PSAK 50 Financial Instruments： Presentations and Disclosures which was published in July, 1998, as well as PSAK 55 Financial Instruments： Recognition and Measurements which was published in 1998. Based on the sample selections procedure and the completeness of the data required by the model, 24 firms listed during 2001-2006 or equal to 66 firm-years observations were identified as the data to be tested. Empirical evidences suggests that Indonesian GAAP is capable of providing signal associated with： （1） Fair value exposures related to manager＇s motive to reduce the cost of financial distress; （2） Cash flow exposures related to manager＇s motive to practice tax arbitrage as well as to overcome underinvestment problems; （3） Interest rate risks related to manager＇s motive to avoid the risk default due to limitations of debt covenants; （4） Forex risk related to manager＇s motive to control forex exposures caused by foreign operations as well as foreign sales.展开更多
The appeal from municipalities, provinces and regions to financial derivative instruments is tied to the need of overcoming the situations in a state of urgency inherent in a balance. On average, one local Italian aut...The appeal from municipalities, provinces and regions to financial derivative instruments is tied to the need of overcoming the situations in a state of urgency inherent in a balance. On average, one local Italian authority in twenty has decided to underwrite a derivative product, giving life to a number of contracts that had a value of over 35 billion euro with an average value of 6.5 million for each contract until 2007. The boom of swaps has, since 2000 on, experienced a peak period from 2003 to the end of 2005, in which the Euribor rate touched a very low level, maintained itself for long periods at around 2% and fallen in some cases even under this value. Many of the contracts completed before 2006, which link the debt of local authorities to variable rates, but also many of those completed from 2006 onwards that moved debt onto fixed rate, which are now a source of loss for the balance of local authorities that have underwritten them. In the 2002-2008 period, the number of the stipulation of contracts local authorities reported to the Ministry of Economy and Finance is about 900, corresponding to more or less 150 per year, which affected 18 regions, 44 provinces, 532 municipalities and 4 mountain commtmities, for a total of 594 authorities. Therefore, the local authorities have approached the derivative instruments in an often approximate way without a real awareness, both for the conditions that were being negotiated and the effects that they would have produced in perspective. The purpose of this work is to highlight the consequences of the use of derivative instruments on the future management of local authorities.展开更多
With China＇s progressive multi-level capital market strategic direction, as well as the gradual implementation of the mixed operation of commercial banks. Derivative financial instruments will be further developed in...With China＇s progressive multi-level capital market strategic direction, as well as the gradual implementation of the mixed operation of commercial banks. Derivative financial instruments will be further developed in commercial banks. This paper focuses on the information disclosure of derivative financial instruments by commercial banks, combined with the standard of disclosure of off-balance-sheet information of international derivative financial instruments, using the disclosure index and project disclosure ratio to analyze the disclosure of derivative financial instruments of listed banks in our country, Off-balance sheet information disclosure, and puts forward suggestions on how to further improve the quality of off-balance-sheet information disclosure of derivative financial instruments in China.展开更多
The development of credit risk transfer market disperse the credit risk of banks, at the same time, also give a threat to the whole financial system with instability. This paper from the influence factors of financial...The development of credit risk transfer market disperse the credit risk of banks, at the same time, also give a threat to the whole financial system with instability. This paper from the influence factors of financial stability, explores how credit risk affecting the stability of financial system. Research found that the rating risk of credit risk transfer can cause default contagion in the financial markets.展开更多
Francis Repka sees bright prospects for the future development of the financial derivatives market in China. Repka,Vice President of the Asian Bond Finance Department of Societe Generale, says the situation in France ...Francis Repka sees bright prospects for the future development of the financial derivatives market in China. Repka,Vice President of the Asian Bond Finance Department of Societe Generale, says the situation in France just after the birth of derivatives was very similar to the situation in China today.展开更多
文摘Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index futures was established. It is a differential equation, its solution shows that the relation between time and price forms a logarithmic circle. If the time is thought of as the probability of its corresponding price, then such a relation is perfectly coincided with the main assumption of the famous formula of option pricing, based on statistical theory, established by Black and Scholes, winner of 1997 Nobel’ prize on economy. In that formula, the probability of price of basic assets (they stand for index futures here) is assummed to be a logarithmic normal distribution. This agreement shows that the same result may be obtained by two analytic methods with different bases. However, the result, given by assumption by Black_Scholes, is derived from the solution of the differential equation.
文摘It’s known to all that under ideal condition the s to rage cost is kept in lower level when storage management be arranged by Economic Order Quantity(EOQ).Does this mean that any companies should set up their own storing system in proportion to the scale of the commodities’ producing or sell ing Furthermore, even if they manage storage in EOQ, because of different oper ation scale, geographical condition or ability borrowing money from financial ma rket, different companies pay unequal cost in storing the same commodity.In thi s paper, except for supplying commodities from our own storage system, the autho rs have analyzed other two supplying ways without whole storage system, they are forward contracts and futures contracts.The authors have discussed variable su pply cost for above different supply measures.According to the cost of each sup ply way, the managers can choose the most economical way in supplying the commod ity and predict the price of futures from storage management arranged by EOQ.Th e summary content is as follow: 1. The comparing of supply cost between forward contracts and storing system a rranged by EOQ. (1) The supply cost from forward contracts (2) The supply cost from storage system arranged by Economic Order Quantity (3) The application example for comparing cost in different supply way 2.The comparing of supply cost between futures going physical and storing syst em arranged by Economic Order Quantity. (1) The supply cost from futures going physical (2) The correlation between futures contracts and storage management arranged b y EOQ (3) The application example for comparing cost in different supply way 3.How does storing system of scale economic affect the price of forward and fu tures contracts (1) How does the price of forward and futures contracts fluctuate (2) How do we calculate the price of a commodity at future point from the cost of scale economic storing (3) How do we operate efficiently in derivatives market by using the cost of sc ale economic storing (4) The application example for analyzing the price of futures 4.The correlation among storage managementforward contracts and futures mark et.
文摘Similar to the method of continuum mechanics, the variation of the price of index futures is viewed to be continuous and regular. According to the characteristic of index futures, a basic equation of price of index futures was established. It is a differential equation, its solution shows that the relation between time and price forms a logarithmic circle. If the time is thought of as the probability of its corresponding price, then such a relation is perfectly coincided with the main assumption of the famous formula of option pricing, based on statistical theory, established by Black and Scholes winner of 1997 Nobel' prize on economy. In that formula, the probability of price of basic assets (they stand for index futures here) is assummed to be a logarithmic normal distribution. This agreement shows that the same result may be obtained by two analytic methods with different bases. However, the result, given by assumption by Black-Scholes, is derived from the solution of the differential equation.
文摘First of all, this paper explores monetary perspectives of Keynes and Friedman. Secondly, it explores financial derivative system in global economy. Thirdly, this study explores world money notion of M. Keynes. Keynes presented world money concept in 1944, in Bretton Woods Talk. His notion may be applied through global GDP today. Assumption of this study is that world money may finance debt payment of nations, and it finances balanced payment deficit of economies, because capitalism of modem economy requires money to run business system. Uysal （2016） presented World money Notion and 2008 Process in conference of 1 lth International Silkroad in Tbilisi, Georgia. Uysal （2015, 2016） discussed World Money concept in the conference with assumption that it may increase demand in global economy. This study is based on case study, which is 2008 Global Crise. Because its effect continues worldwide.
文摘Motivated by the accounting events of firm＇s default related to derivatives and other financial instruments transactions, this study is aimed to investigate the capability of accounting information to signal the risks associated with the use of financial derivatives for hedging. Hypothesis are developed based on the theory and empirical evidences of manager＇s motive to use derivatives for hedging （Berkman ＆ Bradbury, 1968; Dune, et al., 2003） as well as signaling theory of accounting information （Ball ＆ Brown, 1968; Beaver ＆ Dukes, 1972; Jensen ＆ Meckling, 1976; Megginson, 1997）. The hypotheses are formulated in the Ordinary Least Square model. The study uses Statistical Product and Service Solutions （SPSS） version 14 as software to conduct the statistical tests. Non-bank and non-financial institutions firms with financial derivatives transactions listed in Indonesian Stock Exchange during 2001 to 2006 are chosen as the sample. Determinations of the time frame has considered the timing of introduction of revisions of accounting standard on derivatives and other financial instruments in Indonesia PSAK 50 Financial Instruments： Presentations and Disclosures which was published in July, 1998, as well as PSAK 55 Financial Instruments： Recognition and Measurements which was published in 1998. Based on the sample selections procedure and the completeness of the data required by the model, 24 firms listed during 2001-2006 or equal to 66 firm-years observations were identified as the data to be tested. Empirical evidences suggests that Indonesian GAAP is capable of providing signal associated with： （1） Fair value exposures related to manager＇s motive to reduce the cost of financial distress; （2） Cash flow exposures related to manager＇s motive to practice tax arbitrage as well as to overcome underinvestment problems; （3） Interest rate risks related to manager＇s motive to avoid the risk default due to limitations of debt covenants; （4） Forex risk related to manager＇s motive to control forex exposures caused by foreign operations as well as foreign sales.
文摘The appeal from municipalities, provinces and regions to financial derivative instruments is tied to the need of overcoming the situations in a state of urgency inherent in a balance. On average, one local Italian authority in twenty has decided to underwrite a derivative product, giving life to a number of contracts that had a value of over 35 billion euro with an average value of 6.5 million for each contract until 2007. The boom of swaps has, since 2000 on, experienced a peak period from 2003 to the end of 2005, in which the Euribor rate touched a very low level, maintained itself for long periods at around 2% and fallen in some cases even under this value. Many of the contracts completed before 2006, which link the debt of local authorities to variable rates, but also many of those completed from 2006 onwards that moved debt onto fixed rate, which are now a source of loss for the balance of local authorities that have underwritten them. In the 2002-2008 period, the number of the stipulation of contracts local authorities reported to the Ministry of Economy and Finance is about 900, corresponding to more or less 150 per year, which affected 18 regions, 44 provinces, 532 municipalities and 4 mountain commtmities, for a total of 594 authorities. Therefore, the local authorities have approached the derivative instruments in an often approximate way without a real awareness, both for the conditions that were being negotiated and the effects that they would have produced in perspective. The purpose of this work is to highlight the consequences of the use of derivative instruments on the future management of local authorities.
文摘With China＇s progressive multi-level capital market strategic direction, as well as the gradual implementation of the mixed operation of commercial banks. Derivative financial instruments will be further developed in commercial banks. This paper focuses on the information disclosure of derivative financial instruments by commercial banks, combined with the standard of disclosure of off-balance-sheet information of international derivative financial instruments, using the disclosure index and project disclosure ratio to analyze the disclosure of derivative financial instruments of listed banks in our country, Off-balance sheet information disclosure, and puts forward suggestions on how to further improve the quality of off-balance-sheet information disclosure of derivative financial instruments in China.
文摘The development of credit risk transfer market disperse the credit risk of banks, at the same time, also give a threat to the whole financial system with instability. This paper from the influence factors of financial stability, explores how credit risk affecting the stability of financial system. Research found that the rating risk of credit risk transfer can cause default contagion in the financial markets.
文摘Francis Repka sees bright prospects for the future development of the financial derivatives market in China. Repka,Vice President of the Asian Bond Finance Department of Societe Generale, says the situation in France just after the birth of derivatives was very similar to the situation in China today.
