Structured Equity Derivatives Essay Example | Topics and Well Written Essays - 4000 words

Structured Equity Derivatives - Essay Example Leverage on equity returns over predetermined ranges. Limit or reduce downside exposure to the underlying equities. Even out, compensate or reduce transaction costs as part of multiple option sophisticated investing strategies. The term equity derivative essentially means a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participant's trade structured equity derivatives in order to transfer or transform certain risks associated the underlying. Options are by far the most common equity derivative; however there are many other types of equity derivatives that are actively traded. Ramaswami et al(2001) have lucidly described the concept of structured equity linked derivatives through the concept of Equity Linked Notes(ELNs).They state as follows, "An Equity-Linked Note (ELN) is an instrument that provides investors fixed income like principal protection together with equity market upside exposure. An ELN is stru ctured by combining the economics of a long call option on equity with a long discount bond position. The investment structure generally provides 100% principal protection. The coupon or final payment at maturity is determined by the appreciation of the underlying equity. The instrument is appropriate for conservative equity investors or fixed income investors who desire equity exposure with controlled risk". The figure below explains the profits at the expiration of a fully protected ELN . Current Industry Scenario Since their launch on the London Stock Exchange in 2005, Listed Structured Products have become popular and flexible investment tools for UK wealth managers and brokers. In there simplest form, they offer ETF like access to underlying that may be otherwise difficult or expensive to trade, such as commodities, emerging markets or property indices. The more structured products, such as Accelerators, provide enhanced upside participation with no worse than market risk. In addition they can reduce other risks, such as eliminating currency risk for non UK investments, or provide an element of capital protection in case of market falls. Another range of products are designed for Income seeking investors. These can offer high annual (or semi-annual or quarterly) coupon payments in return for giving away upside market participation. All Listed Structured Products enjoy the benefits of being traded directly on the London Stock Exchange. These include: Transparency:Live, two-way prices are maintained throughout the trading day Ease of trade:Products trade and settle via CREST as with UK equity Liquidity: Trades of 5m+ can be executed at prevailing market prices Flexibility: Min trade size of 1,000 makes products highly accessible Key Terminology:1 Trackers: Tracks an underlying asset (commodity, Halifax house price index, equity indices etc) Cost efficient means to trade an asset Diversify exposure across an index Stamp duty free Typically long-dated or indeed undated with an indefinite lifespan Reverse Trackers: An inverse relationship with the underlying asset Profit from downwards price movements in the underlying Stamp duty free Capital Protected: Exposure to underlying asset at fixed percentage Capital invested is protected at specified level Stamp duty free Yield Enhancement: Track underlying instrument without leveraged downside Can incorporate many different features which affect

Benefits of mobile applications in hospitality indusrty Essay

Benefits of mobile applications in hospitality indusrty - Essay Example in the service industry have a duty to identify the major resources that can help them generate competitive advantages in the course of their operations. Additionally, they have to be in a better position access these resources and capitalize on them effectively in the process of improving the performance of their businesses while being competitive in the industry. The type and relevance of resources changes from one company to another and may also rely on the factors present in the business’ external environment. So far, it is evident that some of the old resources used by companies in the past like personal contacts and offering low prices are fast losing their effectiveness as competitive advantages. These resources are being replaced by branding and quality as some companies have adopted them (Tsai, Song & Wong, 2009). Most companies, not only in the hospitality industry, have been researching and trying on new technologies in order to improve their competitiveness and enhance the quality of their products and services. When companies are developing these new technologies, they ensure that they set new policies and regulations to guide the use and application of these technologies in their business operations. One of the newly found competitive advantages for business and in the hospitality industry is dependence on information and technology. Information technology like the internet and mobile technology have become relatively new and significant sources of competitive advantages to firms. These technologies are very different from the previous strategies that some companies have relied on to enhance their operations and service delivery. Interestingly, most of the recent conventional researches and studies have not effectively portrayed information technology to be a significant factor that can enhance the success and excellence in companies’ performance (PraniÄ ević, Alfirević, & Ã…  temberger, 2011). Additionally, some recent studies have argued

The impact of Hurricane Katrina on the economy Essay

The impact of Hurricane Katrina on the economy - Essay Example There are some strategies implemented to overcome the disaster caused to the economy by this hurricane. Hurricane Katrina has affected the Gulf of Mexico, New Orleans and Louisiana, which is the main hub of nation's oil, gas production and distribution. It severely damaged the oil production and refining facilities in these areas crippling the oil and gas production of the country. The fuel produced by the country is a contributing factor to the economic growth of a country. The damage of such a resource has its implications of various sectors. Although, there is sometime required to estimate the damage caused by this hurricane, predications are made about the potential loss that the economy will incur. Hurricane Katrina has resulted in the increase in prices of gasoline and other oil products. The damage of oil production and refining facilities has resulted in high demand of gasoline. The prices of fuel have increased by about by 15 times. [Hurricane Katrina's impact on US economy should not be overestimated, 2005]. Because of this increase in price, there are various industries, which are predicted to be affected by this calamity. This damage caused to the oil and gas production of the country is likely to affect the import and export of goods, retail market, real estate business and large organizations. [Little, 2005]. Gulf of Mexico comprises of about 30 percent oil production, 20 percent of the gas production and 60 percent of the oil imports in the U.S. [Samuelson, 2005]. This increase in the oil and gasoline price has affected the import and export of goods. Oil and gasoline is essential for transportation of products into and outside the country. The devastation caused to the oil and refinery productions in these areas have affected the transportation of the grains and goods outside the country and inflow of coffee and cargo into the country. [Hurricane Katrina's impact on US economy should not be overestimated, 2005]. However, there is a consolation that most of the import and export of goods occur after the fall so it has not causes a major damage to the foreign trade. [Samuelson, 2005] The increase in the price of the fuel has resulted in increase in price of every petrol-chemical and other related product. For instance, due to the increase in crude oil, the price of home heating products is expected to reach a soaring height during the winter season. [Little, 2005]. The hurricane has also affected the *retail market. There is increase in price on most of the products as a result the consumer budget is being affected. Most of the people spend large amount of money on the fuel due to the increase in prices of the fuel, while there is no increase in their salary or wages. As a result, they are unable to purchase high priced products. This will tend to affect the retail sales. *Consumer spending accounts to about two-thirds of the economy due to which a recession is forecasted in the economy. [Little, 2005]. The real estate business will make huge profits due to the hurricane. The hike in prices of the fuel and the shortage of building material in the country will result in increase in the value of the land and

Information systems Essay Example | Topics and Well Written Essays - 750 words - 1

Information systems - Essay Example Since Nucor Steel believes staunchly in its customers, it is essentially taking care of everyone under this umbrella. These include the shareholders, the communities as well as the people who buy and use their products. At Nucor Steel, organizational culture plays a very significant role towards knowledge creation and knowledge sharing since these dictate the message which is sent out to the customers, shareholders and the general public that makes use of the product after they have bought it. This in turn affects the overall performance of the company because the customers form the basis of the company’s growth and development. Social capital is defined as the networks that are existent amongst the people who reside as well as work in a specific society which essentially allows the society to go about functioning in an effective and efficient way (Morden 1995). From a personal perspective, social capital allows the people to connect with one another on a one to one level whil e in a professional perspective; they work alongside one another to achieve common goals and objectives. This social capital premise therefore decides the manner under which their linkages are ensured in the long run. As an example, Nucor Steel likes its people to connect both on a personal as well as a professional perspective to derive harmony for the business which in turns means strategically aligned better performance models. 2. Traditional financial accounting falls short in measuring the value of a company, especially for assessing strategic value of knowledge and capabilities. Why? Describe how knowledge accounting such as balanced scorecard may be used to solve this problem. Traditional financial accounting has often fallen short of measuring the real value of the company and more so for the sake of determining the long term value of knowledge and its

Managing Human Resources Essay Example | Topics and Well Written Essays - 500 words

Managing Human Resources - Essay Example Since I'm holding the position of Human Resources Director for National Lewis and Clark Corporation (NL&C) I had to check the employee's responsibilities. I always had to be in contact with my colleagues and subordinates. The Human Resource department is the heart and soul of any organization or company or firm. After joining the company I noticed that though the company has implemented the salary-sharing plan, the salary was much lesser when compared to national averages. Furthermore they hired candidates who were less experienced and less trained to higher positions. I later found that due to lawsuits filed against them by previous employees, to fill those positions they hires the inexperienced candidates. The employees should work as team and there should be no place for jealousy and complacency. HRM would involve going beyond an agreement to add 'women's issues' to the research agenda, to recognition of the gendered character of employment relations and of work itself. The employees of the company were facing many difficulties. Due to accidents and some ailing factors employees were unable to perform up to the mark. I suggested the company to follow the rules of Americans with Disabilities Act (ADA). According to the

Leadership in Health Care Organizations Practicum Coursework - 14

Leadership in Health Care Organizations Practicum - Coursework Example Our entire organization was sealed in a way for the safety precaution purpose. Along with my team, especial health team was also overlooking the patient’s case. We were either prohibited to approach the patient unnecessarily. When I and my team went to give the initial treatment to the patient, then I examine that it might not be small pox. I immediately inform my leader to run some blood tests, before beginning the small pox precaution treatment. My leader humiliated me, and disagreed. Patient’s condition was not getting better with the given treatment. His condition was getting more critical. I hardly managed to conduct some tests of patient, to come up with a proof. I presented the tests result to my leader with a proof that, it is some other skin allergy containing identical signs of small pox. I asked my leader to agree with my observation, trust and stop the wrong medical treatment. On getting the patient worst, my leader eventually gave importance to my evaluatio n and made the especial health control team to cope up with me. As soon as the treatment given to the patient was replaced, it confirmed the misjudgment of small pox taken by my leader. Patient’s overall condition got stable and in control. Patient had some other skin disease, which was absolutely treatable. I was glad that my leader put down his stubbornness for a while, by giving the significance to my experience so far. That was the time, I really felt myself well acknowledged and educated in my working field. Leader can’t always be right. Sometimes the situations come across, which could probably mislead a leader’s examination over his team members. By doing the right thing at the right time, we as a team were successful in saving the life of our patient. Our organization was unsealed, and the inside working was switch onto usual. The outcome which can be taken by this experience is that, humility is

Electromagnetic radiation (EMR) Term Paper Example | Topics and Well Written Essays - 1000 words

Electromagnetic radiation (EMR) - Term Paper Example Mostly, Electromagnetic Radiation is in the forms of waves. These waves include: Radio Waves, Microwaves, Infrared, X- rays and Gamma-rays (Mattson). The magnetic and electric fields resulting in the electromagnetic waves interact by coming together at right angles to each other and these combined waves move perpendicular to both electric and magnetic oscillating fields and as a result, the disturbance is caused (Nikita , Kevin and Mateo). The resulting electron radiation is released in bundles of light energy which travel at a speed of 299 792 458 m / s, equivalent to the speed of light, as quantized harmonic waves. This electromagnetic waves are grouped according to their wavelength and the this results in the electromagnetic spectrum. The resultant magnetic and electric waves move perpendicularly to each other having certain characteristics which are Amplitude, frequency and wavelength. Features of Electromagnetic Radiation Wavelength The movement of the electromagnetic waves is in form of patterns. The distance that exists between two peaks is the wavelength of the wave. The wavelength of a waveform is measured in meters. This is illustrated in the figure below. Frequency Frequency can be defined as the number of oscillations of the wave per unit time. The frequency of waves is not constant, it varies and the variation greatly depends on the type and nature of the electromagnetic radiation. The frequency of a wave is measured in Hertz. The wave can have high frequency or low frequency as indicated in the diagram below. The frequency is related to the wavelength by the dispersion relation is given by: Where  the wavelength and c is the propagation speed Amplitude Amplitude refers to the characteristic height of the wave. Amplitude is a measure of the intensity of the wave and is measured in meters. The amplitude of an electromagnetic radiation is given by Where  Refers to the electrical amplitude,  is the wavelength and c is the propagation speed. Characteristics of electromagnetic Radiation Interference This is the process in which two waves superposes to form one resultant wave. For interferenc e to occur, the source of the waves must be coherent. If two electromagnetic waves having the same frequency get together i.e. they superpose, it results into a wave which has the resultant magnetic and electric field strength equal to the sum of fields of the two waves. When two strong waves moving that have their fields moving in one direction, i.e. same direction in time and space, the resulting waveform is twice that of each individual waveform (Encyclop?dia Britannica Online). This results in constructive interference. However, the superposition of a wave having an electric field in one direction in space and with another electromagnetic radiation wave which has the same frequency but with an electric field in the opposite direction in space and time results in cancellation and a result, there is no formation of a waveform (Encyclop?dia Britannica Online). This implies that the two waves are not in phase. The resultant effect is termed as destructive interference. In summary, s uperposition of waves results in destructive, constructive or partial interference considering the magnitude of the waves being superposed. If two monochromatic waves described by And Then The value is responsible for the interference process. If then the resultant interference is constructive If Then  If Then the interference is a destructive interference. Diffraction When electromagnetic waves come onto obstacles, they are diffracted. Diffraction is the process by which the waves bend around obstacles. This can be illustrated as in the diagram be