Case Study On Credit Suisse

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Introduction Credit Suisse is a leading global financial services company. It provides businesses, institutional and high-net-worth private clients worldwide with advisory services, comprehensive solutions, and excellent products. The two global divisions: Private Banking & Wealth Management and Investment Banking carry out the integrated functions. Credit Suisse is active in Wealth Management, Investment Banking and Asset Management in India, serving high-net-worth individuals, corporate and institutional clients. It has a strong commitment to India. A total of four offices in three locations and more than 3500 employees inclusive of Centers of Excellence (CoE). The Credit Suisse CoEs aim to leverage talent around the world to maximize efficient…show more content…
This strategy is particularly used when an investor believes that price will move significantly, but not sure about the direction in which the move will happen. By this strategy, the investor can maintain unlimited gains and the loss is limited to the cost of both options contracts. Long Strangle In this strategy, the investor buys a call and put option with same maturity and underlying asset but have different strike prices. The put strike price should preferably be below the call option strike price and both options should be out of money. An investor who uses this strategy believes the underlying asset's price will experience a large movement, but is unsure of which direction the move will take. This strategy limits the losses to the costs of both the options that have been purchased; Strangles would be less expensive than straddles as the options purchased are out of money and hence at a lesser premium. Butterfly…show more content…
The close price of an asset is noted and the total impact is calculated by multiplying the closing price with the quantity of the asset held by the firm. The prices so found are compared with the prices that are received internally from the firm and matched to find out whether there are significant economic impacts. The discrepancy may be caused due to considerations of different closing prices by the traders or from faulty readings. There exists a range of impact, if the difference between IPV calculated and trader calculated prices lies within the permissible impact range, then the difference is neglected, else the difference has to be noted and sent to further offices for their review and amendments. This process helps the fir to know the correct economic impact that currently booked positions may have. It is generally done once a month for all the booked positions in the firm. The testing and verification phase of this process is done independently by the product controllers and only the results are reported to the
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