iobavnl do dhe Entvo

The Q inhoven!

whit h
cannof bo
Samont'
Spaikic divwsiliat'on.
Ciminade d dhvrvoh
Yecessons

xamples Gnctude Eonomic

geqPital Erants
Cnhet
wwed do yeduce &,
Otging : A stvaqy
firancial ysle by toking an
imircke
tna alakcd aet,
C4Setttng position
Such as
price 4luchions

O sprution he acl ol daking tinancial

posidons in mavkets fth dhe aim ot
protidtrg hom fodoNe price nmoveents
involving high rút tor dhe powbl
olden
high Ydor
 The Simuldqneous

and o an ayeBs in diforant

martot do xoloi price dloun
prolt

9 Risk Tyansla
toheu inanaial

visk is hiled om party

commonly done thyoug hr
ancther ,
insuvana dorivotvoy conhracds

the procun
ponial inantial oses
GrnQernaning Sradrgig such as. and asset
divesiicaton hedging
alocadion

O Rist avaidant
ol ¢(iminading posure o
he act
partcolay rist by not engging
a
in aries dhat Could toad do Podendial

655es
 Rist Qatroo
Jeidy 8 lhcut:hood

ssen dha yeriy

ot akinanial
yisk limiks
Sal pabols &
Yist dhat a bo uers
cYedit risk e nist dhoiy
moat
conten party ll totail o
kinandal oolicagBon 1
tading
kinanca \oya tor A ada d, inveleY

besween dcdoves and oruord s

10 dilteren
SctUres anu stanardied. érchang
Yadod conwochs wih dailg sethemust

dhu coonden qresmand

with s ettleun

at conhact matridy
(I1

commod idies ktore,

contvacts do by & sotl a specit ic
commoldy
(e9roitiqod)
(89ioil
quontdy ot
o a
on ototore dote.
pricó
ata ped oteaminod
hodging d sepoladton
commonly Used tor

can option euxopon

(14) meri
can
be
Amorican opBon
dn balore
belore xpiroion,
ttme
any
Ercarsieed at be
whie a Eoropaan optto can
tkp'aton date
rercised on th
qpions

maasore ot an
mone/nesS I
d
categoriRed
vave
inbinsc (bveale - een)
mony
prolitable
rat- th
proljaba)
monoy (not
oUt ol -thu
 inomiol sWon pricens

model Use d.
d mathomattca l
ot opYi on
eSimate thale
to hee H
apria drer
by onating assets moves
ep (ß,

onedelingin disovele
seps.
down In
(15) opton preatum
pyicd pald by an oen
J
he right do
dhe
soller tor
do thu at a
speited
buge an
asJet
tim tram ha

pric

Gtoreign mant
n duo
betsoe
SYentie. at

Rardies do yevorse dha

data
and
iniial
an data
at
oture
at a

predorct min d Yate

 Yade Spsr
Aqvcoment bettuenn duo pard
atan inidia l.
CoYYOn Cies

innid
revovse dhe
Echa qe
ate and
paumants otcally sengein
Vade

Hoading rale, to manage

tore d Yades tor
inweyt rate visk.

che MUbple paries

nanatul
re co
aqvee do
sha
sigl Enit
imad 'on any
Ydue -ohe partnorsips o

commony
Seen in

Joint Ventores losse

prol/ts o
totees
ghe
hich
payolt
ot conract.

tutore
trom a
Yeaized
diutouge
Hao dh.
dopends, on ha prica
masts
he
pric and
Canhact

ot erpirOdon