FUTURESANDOPTIONSMARKETS(跨国公司财务管理Jos.pptx

Multinational Financial Management Alan Shapiro 7th EditionJ.Wiley SonsPower Points byJoseph F. Greco, Ph.D.California State University, FullertonCHAPTER 8CURRENCY FUTURES AND OPTIONS MARKETS CHAPTER OVERVIEWI. FUTURES CONTRACTSII. CURRENCY OPTIONSPART I.FUTURES CONTRACTSI. CURRENCY FUTURES A. Background 1. 1972: Chicago Mercantile Exchange opens International Monetary Market. (IMM) FUTURES CONTRACTS2. IMM provides a. an outlet for hedging currency risk with futures contracts. b. Definition of futures contracts: contracts written requiring a standard quantity of an available currency at a fixed exchange rate at a set delivery date.FUTURES CONTRACTSc. Available Futures Currencies: 1.) British pound 5.) Euro 2.) Canadian dollar 6.) Japanese yen 3.) Deutsche mark 7.) Australian dollar 4.) Swiss francFUTURES CONTRACTS d. Standard Contract Sizes: contract sizes differ for each of the 7 available currencies. Examples: Euro = 125,000 British Pound = 62,500FUTURES CONTRACTSe. Transaction costs: payment of commission to a traderf. Leverage is high 1.) Initial margin required is relatively low (e.g. less than .02% of sterling contract value).FUTURES CONTRACTSg. Maximum price movements 1.) Contracts set to a daily price limit restricting maximum daily price movements. FUTURES CONTRACTS2.) If limit is reached, a margin call may be necessary to maintain a minimum margin.FUTURES CONTRACTSh. Global futures exchanges that are competitors to the IMM: 1.) Deutsche Termin Bourse 2.) L.I.F.F.E.London International Financial Futures Exchange 3.) C.B.O.T. Chicago Board of Trade FUTURES CONTRACTS4.) S.I.M.E.X.Singapore International Monetary Exchange5.) H.K.F.E. Hong Kong Futures ExchangeFUTURES CONTRACTSB. Forward vs. Futures Contracts Basic differences: 1. Trading Locations 6. Settlement Date 2. Regulation 7. Quotes 3. Frequency of 8. Transaction delivery costs 4. Size of contract 9. Margins 5. Delivery dates