微积分网课代修|导数代写Derivatives theory代考|LT013086 TRADING ON FUTURES MARKETS

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微积分网课代修|导数代写Derivatives theory代考|LT013086 TRADING ON FUTURES MARKETS

微积分网课代修|AP微积分代写AP calculus辅导|TRADING ON FUTURES MARKETS

Forward contracts are traded over-the-counter (OTC) whereas most futures are traded on an exchange and the differences between these two approaches are summarised in Table 2.1.
The range of assets on which futures contracts are written is very wide and they are traded on a large number of exchanges around the world (Table 2.2). The basic requirements in buying and selling different types of futures contracts and using them for hedging and speculation are very similar, even though futures contracts are written on a diverse set of underlying assets (e.g. gold, oil, wheat, stocks, stock indices, T-bills, T-bonds, interest rates). The growth in futures contracts is primarily due to the increased volatility of the price of the underlying assets and the need to hedge this risk. Futures contracts which trade in a highly liquid market (with low bid-ask spreads and low commissions) are available on a wide variety of underlying assets, whereas only the OTC forward market for foreign exchange rivals the volume of trading on futures markets.

A futures exchange is usually a corporate entity whose members elect a board of directors, who decide on the terms and conditions under which existing contracts are traded and whether to introduce new contracts (subject usually to the regulatory authority which in the US is the Commodity Futures Trading Commission [CFTC]).

微积分网课代修|AP微积分代写AP calculus辅导|Standardisation

The futures exchange sets the size of each contract, the units of price quotation, minimum price fluctuations, the ‘grade’ and place for delivery, any daily price limits and margin requirements as well as opening hours for trading. For agricultural commodities, the type or grade is also fixed in the futures contract. For example, for corn the standardised grade is ‘No. 2 Yellow’ but other grades can also be delivered – for example ‘No 1. Yellow’ is deliverable for 1.5 cents per bushel more than ‘No. 2 Yellow’ because the quality is higher. The futures exchange sets the minimum contract size (e.g. delivery of 5,000 bushels of corn), delivery dates (e.g. specific dates in March, May, June, July, September, and December) and delivery arrangements (e.g. delivery only to towns A,B, and C ).

For futures on financial assets such standardisation is easier. For example, a foreign exchange (FX) futures contract on the pound sterling (GBP) is rather a homogenous product and only the delivery dates, settlement price, and contract size need to be organised by the exchange. Some futures contracts are traded with maturity dates of only up to a year or two ahead but some contracts have much longer maturity dates. It depends primarily on the demand for such contracts by hedgers. For example, the Eurodollar futures contract is actively traded with maturities out to 15 years or more because these contracts are used by swap dealers to hedge their interest rate swap positions.

The size of the contract is important. If too small, speculators will not trade the contract because the transactions costs per contract may be relatively high but if the ‘size’ is too large, then hedgers will not be able to hedge relatively small amounts (e.g. the Eurodollar futures has a contract size of $1 m and you cannot hedge $500,000 by using half a contract). The tick size and tick value should be easily understood by market participants. For example, the US T-bill futures contract has a contract size of $1 m and a tick size of 1 basis point (i.e. one-hundredth of 1% ) and a minimum price change (tick value) of $25. Hence, if the futures price changes from F=99.00 to F=99.01, the value of one futures contract (on T-bills) changes by $25.

微积分网课代修|导数代写Derivatives theory代考|LT013086 TRADING ON FUTURES MARKETS

微积分网课代修| AP微积分代写AP calculus辅导| TRADING ON FUTURES MARKETS

远期合约在场外交易(OTC),而大多数期货在交易所交易,表2.1总结了这两种方法之间的差异。
期货合约的资产范围非常广泛,它们在世界各地的大量交易所进行交易(表2.2)。买卖不同类型的期货合约并将其用于对冲和投机的基本要求非常相似,即使期货合约是针对各种标的资产(例如黄金,石油,小麦,股票,股票指数,国库券,国库券,利率)而写的。期货合约的增长主要是由于标的资产价格波动性增加以及需要对冲这种风险。在高流动性市场(具有低买卖价差和低佣金)交易的期货合约可用于各种标的资产,而只有外汇的场外远期市场才能与期货市场的交易量相媲美。

期货交易所通常是一个公司实体,其成员选举董事会,决定现有合约交易的条款和条件以及是否引入新合约(通常受制于监管机构,在美国是商品期货交易委员会[CFTC])。

微积分网课代修| AP微积分代写AP calculus辅导| Standardisation

期货交易所设定每份合约的规模、报价单位、最低价格波动、“等级”和交割地点、任何每日价格限制和保证金要求以及交易的开放时间。对于农产品,类型或等级也在期货合约中固定。例如,对于玉米,标准化等级为“2号黄色”,但也可以提供其他等级 – 例如“1号”。黄色’可交付给1.5每蒲式耳的美分比“2号黄色”多,因为质量更高。期货交易所设定了最低合约规模(例如,交付5,000蒲式耳玉米),交割日期(例如3月,5月,6月,7月,9月和12月的特定日期)和交割安排(例如仅交付到城镇)A,B和C).

对于金融资产期货来说,这种标准化更容易。例如,英镑(GBP)的外汇(FX)期货合约是一种同质产品,只有交割日期,结算价格和合约规模需要由交易所组织。一些期货合约的交易到期日最多只提前一两年,但有些合约的到期日要长得多。这主要取决于套期保值者对此类合约的需求。例如,欧洲美元期货合约交易活跃,期限为15年或更长时间,因为这些合约被掉期交易商用来对冲其利率掉期头寸。

合同的大小很重要。如果规模太小,投机者将不会交易合约,因为每份合约的交易成本可能相对较高,但如果“规模”太大,则套期保值者将无法对冲相对较小的金额(例如,欧洲美元期货的合约规模为万你不能对冲100万你不能对冲500,000通过使用半个合约)。价格变动大小和价格变动值应该很容易被市场参与者理解。例如,美国国库券期货合约的合约规模为万和个基点的刻度大小(即100万和1个基点的刻度大小(即125.因此,如果期货价格从F=99.00自F=99.01,一份期货合约(在国库券上)的价值变化如下:$25.

微积分网课代修|导数代写Derivatives theory代考|LT013086 TRADING ON FUTURES MARKETS
微积分网课代修导数代写Derivatives theory代考

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