partition-dependent framing effects in lab and field prediction markets
... distribution of a continuous variable, such as the closing price of a stock index, depends on the particular intervals into which the variable’s possible values are divided, a phenomenon called “partition-dependence.” In particular, judged probabilities seem to reflect reliance on a diffuse or “igno ...
... distribution of a continuous variable, such as the closing price of a stock index, depends on the particular intervals into which the variable’s possible values are divided, a phenomenon called “partition-dependence.” In particular, judged probabilities seem to reflect reliance on a diffuse or “igno ...
GCC Markets Monthly Report
... National Industries are still awaited. Shares in Zain got an 11.5% boost during the month on the back of a positive regulatory development in Saudi Arabia where the telecom regulator slashed mobile termination rates by 40% greatly helping Zain KSA. Nevertheless, the company reported a 10.2% drop in ...
... National Industries are still awaited. Shares in Zain got an 11.5% boost during the month on the back of a positive regulatory development in Saudi Arabia where the telecom regulator slashed mobile termination rates by 40% greatly helping Zain KSA. Nevertheless, the company reported a 10.2% drop in ...
Trading and Electronic Markets
... that stood when the trades were first ordered. The VWAP (volume-weighted average price) method, which managers commonly use, has many problems. Keeping track of the opportunity costs associated with trades ordered but not executed is very important because this information can help traders know when ...
... that stood when the trades were first ordered. The VWAP (volume-weighted average price) method, which managers commonly use, has many problems. Keeping track of the opportunity costs associated with trades ordered but not executed is very important because this information can help traders know when ...
Inverse Indexing
... market will decline over the next quarter. The investor could hedge their portfolio against a decline by buying the Horizons BetaPro S&P/TSX 60™ Inverse ETF to hedge against it. By buying an inverse ETF, the investor can avoid selling stock from their existing portfolio, which may incur a capital ga ...
... market will decline over the next quarter. The investor could hedge their portfolio against a decline by buying the Horizons BetaPro S&P/TSX 60™ Inverse ETF to hedge against it. By buying an inverse ETF, the investor can avoid selling stock from their existing portfolio, which may incur a capital ga ...
Swaps
... A swap is worth zero to a company initially At a future time its value is liable to be either positive or negative The company has credit risk exposure only when its value is positive Some swaps are more likely to lead to credit risk exposure than others What is the situation if early forward rates ...
... A swap is worth zero to a company initially At a future time its value is liable to be either positive or negative The company has credit risk exposure only when its value is positive Some swaps are more likely to lead to credit risk exposure than others What is the situation if early forward rates ...
Unspanned Macroeconomic Factors in Oil Futures
... estimated oil risk premium that better explains the historical returns to oil futures, more than tripling the adjusted R2 from 1.3% to 4.3%. The implied monthly risk premium is nine times more volatile than that implied by the restricted model, and covaries strongly with the business cycle. These re ...
... estimated oil risk premium that better explains the historical returns to oil futures, more than tripling the adjusted R2 from 1.3% to 4.3%. The implied monthly risk premium is nine times more volatile than that implied by the restricted model, and covaries strongly with the business cycle. These re ...
Hedging with Interest-Rate Forward Contracts
... Pros and Cons of Forward Contracts The advantage of forward contracts is that they can be as flexible as the parties involved want them to be. This means that an institution like the First National Bank may be able to hedge completely the interest-rate risk for the exact security it is holding in it ...
... Pros and Cons of Forward Contracts The advantage of forward contracts is that they can be as flexible as the parties involved want them to be. This means that an institution like the First National Bank may be able to hedge completely the interest-rate risk for the exact security it is holding in it ...
PDF
... trading in these characteristically low volume periods that also include the added risk of becoming involved in the delivery process. Trading in the March contract is analyzed during January and March (the expiration month). The May contract has one observation period-the expiration month. May is al ...
... trading in these characteristically low volume periods that also include the added risk of becoming involved in the delivery process. Trading in the March contract is analyzed during January and March (the expiration month). The May contract has one observation period-the expiration month. May is al ...
Market Makers
... Risk Monitoring on an affiliate of a Market Maker holding such Market Maker’s positions (a “Market Maker Affiliate”) 614E. Rules 614F, 614G and 614H apply to an affiliate who is qualified and registered as a Market Maker Affiliate with the Exchange by way of satisfying the paid-up capital and shareh ...
... Risk Monitoring on an affiliate of a Market Maker holding such Market Maker’s positions (a “Market Maker Affiliate”) 614E. Rules 614F, 614G and 614H apply to an affiliate who is qualified and registered as a Market Maker Affiliate with the Exchange by way of satisfying the paid-up capital and shareh ...
Attracting Foreign Investment
... Discussing proposed Project Thusanang Phase I approach Provide Phase I funding options ...
... Discussing proposed Project Thusanang Phase I approach Provide Phase I funding options ...
AN ANALYSIS OF GLOBAL HFT REGULATION Motivations, Market
... There is little evidence that a market failure exists requiring additional aggressive regulation of HFT, or that government intervention will achieve market integrity or “fairness” goals better than existing market incentives. ...
... There is little evidence that a market failure exists requiring additional aggressive regulation of HFT, or that government intervention will achieve market integrity or “fairness” goals better than existing market incentives. ...
NASDAQ Composite Index® Methodology
... The NASDAQ Stock Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing). Index Maintenance Changes in the price and/or Index Shares driven by corporate events such as stock dividends, stock splits, and certain spin- ...
... The NASDAQ Stock Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing). Index Maintenance Changes in the price and/or Index Shares driven by corporate events such as stock dividends, stock splits, and certain spin- ...
I 1) Which of the following is NOT an example of a
... 1) Which of the following is NOT an example of a forward contract? a) An agreement to buy a car in the future at a specified price. b) An agreement to buy an airplane ticket at a future date for a certain price c) An agreement to buy a refrigerator today at the posted price. d) An agreement to subsc ...
... 1) Which of the following is NOT an example of a forward contract? a) An agreement to buy a car in the future at a specified price. b) An agreement to buy an airplane ticket at a future date for a certain price c) An agreement to buy a refrigerator today at the posted price. d) An agreement to subsc ...
1) If a bank manager chooses to hedge his portfolio of treasury
... a standardized contract. Question Status: Previous Edition Futures differ from forwards because they are used to hedge portfolios. used to hedge individual securities. used in both financial and foreign exchange markets. marked to market daily. Question Status: Previous Edition The advantage of futu ...
... a standardized contract. Question Status: Previous Edition Futures differ from forwards because they are used to hedge portfolios. used to hedge individual securities. used in both financial and foreign exchange markets. marked to market daily. Question Status: Previous Edition The advantage of futu ...
Lecture 5
... Traditional mutual-funds often are traded only once a day at closing, ETFs trade throughout the day. Investment Analysis II - © 2012 Houman Younessi ...
... Traditional mutual-funds often are traded only once a day at closing, ETFs trade throughout the day. Investment Analysis II - © 2012 Houman Younessi ...
Using Markets to Inform Policy: The Case of the Iraq War
... Financial market-based analysis of the expected effects of policy changes has traditionally been exclusively retrospective. In this paper, we demonstrate by example how prediction markets make it possible to use markets to prospectively estimate policy effects. We exploit data from a market trading ...
... Financial market-based analysis of the expected effects of policy changes has traditionally been exclusively retrospective. In this paper, we demonstrate by example how prediction markets make it possible to use markets to prospectively estimate policy effects. We exploit data from a market trading ...
Do Technical Trading Rules Generate Profits?
... years even if in the extremely long run their strategies make profits. Moreover, such long periods would be in contradiction with the study of Taylor and Allen (1992) referred to above, where it was shown that technical analysis was mainly used in the very short run. Second, and using the same line ...
... years even if in the extremely long run their strategies make profits. Moreover, such long periods would be in contradiction with the study of Taylor and Allen (1992) referred to above, where it was shown that technical analysis was mainly used in the very short run. Second, and using the same line ...
Agricultural Derivatives 101
... ...... by using the futures market individuals, companies or countries selling or buying a commodity can protect themselves against price movements in the underlying physical market. This is achieved by selling or buying futures or options contracts through a broker who is a member of the futures e ...
... ...... by using the futures market individuals, companies or countries selling or buying a commodity can protect themselves against price movements in the underlying physical market. This is achieved by selling or buying futures or options contracts through a broker who is a member of the futures e ...
Chapter 27 Risk Management and Financial Engineering
... If a change in the level of interest rates will adversely affect the cash flows of a company (perhaps by raising its cost of borrowing), that firm is exposed to interest rate risk. This is the single most common concern among managers engaged in risk management. Interest rate risk is the risk of suffe ...
... If a change in the level of interest rates will adversely affect the cash flows of a company (perhaps by raising its cost of borrowing), that firm is exposed to interest rate risk. This is the single most common concern among managers engaged in risk management. Interest rate risk is the risk of suffe ...
Commodity market
A 'commodity market' is a market that trades in primary rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar. Hard commodities are mined, such as gold and oil. Investors access about 50 major commodity markets worldwide with purely financial transactions increasingly outnumbering physical trades in which goods are delivered. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.A financial derivative is a financial instrument whose value is derived from a commodity termed an underlier. Derivatives are either exchange-traded or over-the-counter (OTC). An increasing number of derivatives are traded via clearing houses some with Central Counterparty Clearing, which provide clearing and settlement services on a futures exchange, as well as off-exchange in the OTC market.Derivatives such as futures contracts, Swaps (1970s-), Exchange-traded Commodities (ETC) (2003-), forward contracts have become the primary trading instruments in commodity markets. Futures are traded on regulated commodities exchanges. Over-the-counter (OTC) contracts are ""privately negotiated bilateral contracts entered into between the contracting parties directly"".Exchange-traded funds (ETFs) began to feature commodities in 2003. Gold ETFs are based on ""electronic gold"" that does not entail the ownership of physical bullion, with its added costs of insurance and storage in repositories such as the London bullion market. According to the World Gold Council, ETFs allow investors to be exposed to the gold market without the risk of price volatility associated with gold as a physical commodity.