CHAPTER 1 INTRODUCTION Hedging is one of the main functions provided by future market and also the reason for existence of future markets. The main purpose and benefit of hedging on the futures markets is to minimize possible revenue losses associated with the adverse cash price changes. The risk of price variability of an asset can be managed by mechanism of hedging. The hedging activity can be considered as exchanging price risk for basis risk. The basis defined as cash price minus nearly future
the corresponding hedging instrument. In the CCCTB the hedging instrument and hedged item can even be held by different group members. The following conditions should be met to qualify for a hedging relationship: a) The hedging relationship is formally designated and documented in advance b) The hedge is expected to be highly effective and the effectiveness can reliably be measured.
here are three types of financial assets, stocks, bonds and derivatives. Stocks and bonds are financial assets that are used by companies and organizations to gain and raise capital. Derivatives are also another type of financial assets or which are usually used to hedge and manage the financial risks that companies could face. Derivatives are financial instruments whose return is derived from the return on another instrument. That’s mean their performance depends on how other instruments perform
1987 Stock Market Crash The stock market, alongside the attendant futures and options markets, crashed on October 19, 1987, a day known as “Black Monday” when the Dow Jones Industrial Average dropped by 22.6 percent. It is also referred to as the first contemporary global financial crisis (Bernhardt and Eckblad, 2013). S&P 500 stock market index also fell with about 20 percent. According to Carlson (2006), “The 1987 stock market crash was a major systemic shock. Not only did the prices of many financial
well-structured financial system, which helps in the formation of a capital. Financial System is a set of institutional arrangements through which financial surpluses in the economy are mobilised from surplus units and transferred to deficit spenders. The institutional arrangements include all conditions and mechanisms governing the production, distribution, exchange and holding of financial assets or instruments of all kinds and the organisations as well as the manner of operations of financial markets and
evaluate Ma’aly’s position in the marketplace regarding its products and services, then we will propose two strategies that will provide a blueprint to strengthen Ma’aly’s position, mitigate risks, address areas for improvement, sustain a strong financial position, and move the organization forward to new accomplishments. Company’s Description Ma’aly is a national for profit holding real estate investment organization, whose business
failure and a good number of other corporate financial scandals, issues of corporate governance became the focus of public discussion, as poor governance practice was identified as a major contributor to most of the failures. Furthermore, the tragic event of the Russian financial scandal and Asian financial crisis brought global attention to the crucial roles of good corporate governance practice in ensuring soundness of financial services and financial sector stability. Certainly, the fundamental
This well established company has been led by four generations of Smuckers. Over the tenure of its existence there has only been 5 CEO’s. They all shared a common goal, to bring the finest quality food to households and to hold the number one market position in their category. With five of their top executive managers owning a fair amount of shares shows that they are going to act in the best intentions towards the shareholders. (Appendix 1). Right now Smuckers is sitting at a P/E ratio of
Global 500 listing, highest ranked Indian Company IOC and Chennai Petroleum Corporation Ltd. (CPCL, its subsidiary) have 31% national refining capacity, 71% downstream sector pipelines through capacity and 49% of India’s petroleum products share in the market. Out of 22 refineries Indian Oil owns and operates 10 of them and has refining capacity of 1.31 million barrels per day. The various products of Indian Oil includes petrol, diesel, aviation turbine fuel, lubricants, naphtha, bitumen, paraffin, kerosene
CHAPTER 3 INDIA’S ENERGY DIPLOMACY IN THE MIDDLE EAST Energy is vital for the growth and survival of all living beings and it plays a crucial role in the socio-economic development and human wellbeing of a country. It has come to be known as a `strategic commodity’ and any uncertainty about its supply can threaten the functioning of the economy, particularly in developing economies. Energy indicates national prosperity and also underwrites national security. States now desire energy security