Fichas
Equity
Fichas del conjunto (43)
- 1ETFExchange Traded Fund
- 2What is an ETF/ what does it do?Marketable Security (same as financial instrument) that tracks> a market which tracks >an index, commodity , bonds, stocks etc
- 3ETF can be compared to...basket w/ different kind of securities
- 4ETF is merely...exposure to different companies, don't own a share / stock, but an INDEX
- 5ETFs are traded onthe Exchange just like stocks
- 6⦁ Major Indices 1SPY - S&P 500
QQ- Ivesco QQQ - 7⦁ Major Indices 2VTV - Vanguard Value ETF
IShares MSCI - Emerging Markets ETF - 8⦁ Major Indices 3Russel 2000
Dow Jones - 9What are derivatives?a contract between two parties whose value is based on an underlying asset
- 10⦁ The most common derivative products areFutures
Forwards
Options
Swaps - 11What are futures?⦁ A type of contract between two parties buyer or a seller - to buy or sell 'something' at a future date
- 12Characteristics of a Futuretraded on the futures exchange, settlement same day
- 13What are Forwards?⦁ A type of contract between two parties - buyer or a seller- to buy or sell "something" at a future specified date and an agreed upon price today.
- 14Characteristics of a ForwardsOTC - more customizable , less regulated, settles 3-4 days
- 15What are Options?An option is an agreement that gives the buyer, who pays a fee (premium), the right - but not the obligation - to buy or sell specified amount of an underlying asset, at an agreed upon price (strike or exercise price) on or until the expiration of the contract (expiry)
- 16Characteristics of a Options⦁ Premium
⦁ Expiration Date
⦁ Underlying Asset
⦁ Strike price
⦁ Exercise Date
⦁ Issue Date - 17What are Swaps?⦁ Contract between two parties to exchange cash flows
- 18Characteristics of a Swaps?Traded OTC
for ex: mortgage percentage swap on a loan you're giving out - 19Characteristic of an Option: Premium..Cost of an Option
buyer pays to seller when exercised - 20Characteristic of an Option: ⦁ Expiration DateAka Maturity
- 21Characteristic of an Option: ⦁ Underlying AssetCommodities or Security to be bought or sold
- 22Characteristic of an Option: ⦁ Strike pricePrice at which underlying asset is bough or sold
- 23Characteristic of an Option: ⦁ Exercise DateThe date on which a trader decides to exercise an option. Buy or sell underlying asset
- 24Characteristic of an Option: ⦁ Issue DateWhen Option was issued
- 25Characteristic of an Option: ⦁ Callbuyer of the option can purchase the underlying
- 26Characteristic of an Option: ⦁ Putmeans buyer of the option can sell the underlying
- 27Type of Options: Style PerspectiveAmerican Style
European Style - 28Type of Options: Style Perspective American Stylecan be exercised anytime before expiration date
- 29Type of Options: Style Perspective European StyleCan only be exercised at an expiration date
- 30⦁ Money Perspective: For Call OptionIn the money (ITM)
Out of the money (OTM)
At the money (ATM) - 31In the money (ITM)When the underlying security's current market price is higher than the call option's strike price
when you are making money - 32Out of the money (OTM)When the underlying price is trading below the strike price of the call
when you are losing - 33At the money (ATM)When the current market price of the underlying security is the same as options strike price
when you’re breaking even - 34Monthly OptionAn option that expires every month on the third Friday
- 35Weekly Option- An option that expires every Friday
- 36Futures and forwards - I ..must
- 37Options - I ...May
- 38SwapInterest Rate swaps without an actual commodity being exchanged
- 39Options traded on...the exchange
like a future, with the power to retract & take a loss on premium - 40Call Option hopes for ...Hoping for a stock price to go UP
- 41Put Option hopes for ..Hoping for a stock price to go DOWN
- 42Option Premium paid tothe option contract issuer
- 43Settlement Periods Futures Forwards OptionsFutures - Same day
Forwards - 3-4 Days
Options - 2 days
Información
- Descripción
- QA Engineer QA- Finance Fichas sobre Equity, creado por Mircea Manu el 09/12/2021.
- Creado por
- Mircea Manu
- Visitas
- 30
- Valoración