BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGÂN HÀNG Unit 19: DERIVATIVES GVHD: Phan Thị Lệ Hoa Nhóm 4: Phùng Như Hạnh Nguyễn Hà Trúc Phương Mai Trung Hưng • • • • Reading Exercise Exercise Reading Exercise Exercise CONTENT EXERCISE Find words and phrases in the text to complete the sentences put option A is a contract giving the possibility to sell a specified quantity securities, foreign exchange or commodities in the future, if it is advantageous to so (para 3, line 3) Commodities are raw materials such as agricultural products and metals that traded on special exchanges (para 2, line 2) Futures are forward contracts for the purchase and sale of securities, precious metals, etc at a fixed price (para 2, line 1) A line 2) call option is a contract giving the buyer the right, but not the obligation, to buy an asset in the future (para 3, EXERCISE hedge you make transactions that are designed to reduce risk regarding a particular price, interest If you rate or exchange rate (para 3, line 11) interest rate An is an exchange of future payments on borrowed money according to specified terms (para 2, line 7) exericise an option you use or implement the option, taking up the possibility to buy or sell something lf you (para 3, line 6) A speculator anticipates future changes in a market and makes risky transactions, hoping to make a gain (para 3, line 10) A premium is the money the writer of an option receives (para 3, line 7) EXERCISE Use a word or phrase from each box to make word combinations from the text You can use some words more than once Then use some of the word combinations to complete the sentences below swap interest payments Companies with fixed and floating loans can choose to eliminate Futures contracts allow you to risks short-term reduce risks/ uncertaintly ;speculating is the opposite Hedging is the attempt to options If prices move the wrong way the buyers of not them determine/ guarantee prices With futures, you can several months in advance exercises READING – An Investment ‘time bomb NEWS Buffett warns on investment 'time bomb' investment clients risk instruments Contracts devised by ‘madmen’ speculate commodities underlying hedge contracts BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGÂN HÀNG Unit 21: asset MANAGEMENT GVHD: Phan Thị Lệ Hoa Nhóm 4: Phùng Như Hạnh Nguyễn Hà Trúc Phương Mai Trung Hưng 1.READING Why are people getting angry with active money managers? Because they are not performing better than passive managers, who simply invest in indexed funds Why did indexed funds develop? Because people argued that it was impossible to consistently better than the markets (and they wanted to take advantage of the bull markets in the 80s and 90s) What is the efficient market hypothesis? The efficient – market hypothesis is that a company’s share price always accurately reflects all available useful information Further analysis will not reveal any additional information, so there is no way of knowing more than the rest of the market participants 1.READING What is George Soros’s argument against the efficient-market hypothesis? George Soros argues that markets often over – or undervalue things, and that high and low share prices can make things happen which in turn have an effect on prices How did Peter Lynch beat the market? Peter Lynch found good companies that the market was undervaluing Why does the article recommend that the average investor should use a passive index linked fund rather than an actively managed one? Because most active managers worse than the market average, and unlike passive managers they also charge fees 2 DIPLOMTIC LANGUAGE Match the direct statements (1-6) with the more diplomatic phrase (a-f) 1–d That's a bad idea! Don't you think it would might be a good idea to ? 2–a Completely disagree with you! I'm not entirely sure about that Maybe it would be better to just transfer some of your 3–f You can't just transfer all your funds! funds? 4–c That's illogical! I'm afraid don't think that's very logical 5–b That'll make things worse! 6-e You shouldn't that! I'm not sure that that would make things any better Perhaps you should consider a different investment strategy? BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC NGÂN HÀNG 12 ... special exchanges (para 2, line 2) Futures are forward contracts for the purchase and sale of securities, precious metals, etc at a fixed price (para 2, line 1) A line 2) call option is a contract... price, interest If you rate or exchange rate (para 3, line 11) interest rate An is an exchange of future payments on borrowed money according to specified terms (para 2, line 7) exericise an option... foreign exchange or commodities in the future, if it is advantageous to so (para 3, line 3) Commodities are raw materials such as agricultural products and metals that traded on special exchanges