Lecture Business finance (9/e) - Chapter 18: Futures contracts

Chapter 18 Futures Contracts Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 18–1 Prepared by Dr Buly Cardak Learning Objectives • Understand what a futures contract is and how futures markets are organised. • Understand the system of deposits, margins and marking-to-market used by futures exchanges. • Have some understanding of the determinants of futures price. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 18–2 Prepared by Dr Buly Cardak Learning Objectives (cont.) • Understand and be able to explain that speculation and hedging with futures contracts may be imperfect. • Understand and explain the features of the major financial futures contracts traded on the Sydney Futures Exchange. • Explain speculation and hedging strategies using the major financial futures contracts traded on the Sydney Futures Exchange. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 18–3 Prepared by Dr Buly Cardak Learning Objectives (cont.) • Understand the valuation of 90-day bank-accepted bill futures contracts and share-price index futures contracts. • Understand and explain the uses of forward-rate agreements. Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 18–4 Prepared by Dr Buly Cardak Futures Contracts • A futures contract is an agreement which provides that something will be sold in the future at a fixed price. • The price is decided today, but the transaction is to occur later. • Australian futures contracts are traded on the Sydney Futures Exchange (SFE). Copyright 2006 McGraw-Hill Australia Pty Ltd PPTs t/a Business Finance 9e by Peirson, Brown, Easton, Howard and Pinder 18–5 Prepared by Dr Buly Cardak ... - tailieumienphi.vn