Financial Markets for Commodities
Agricultural, energy or mineral commodities are traded internationally in two market categories: physical markets and financial markets. More specifically, on the financial markets, contracts are negotiated, the price of which depends on the price of a commodity. These contracts are called derivativ...
| Otros Autores: | |
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| Formato: | Libro electrónico |
| Idioma: | Inglés |
| Publicado: |
Hoboken, NJ :
John Wiley and Sons, Inc. : Wiley-ISTE
2019.
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| Colección: | Wiley ebooks.
Innovation, entrepreneurship and management. |
| Acceso en línea: | Conectar con la versión electrónica |
| Ver en Universidad de Navarra: | https://innopac.unav.es/record=b40637487*spi |
Tabla de Contenidos:
- Cover; Half-Title Page; Title Page; Copyright Page; Contents; Preface; Introduction; 1. General Observations on the Physical Trading of Commodities; 1.1. The standardization of commodities and commercial contracts; 1.2. Price volatility of commodities; 1.2.1. Elasticity; 1.2.2. King's law; 1.3. Important actors in the trading of agricultural commodities; 1.3.1. Enterprises trading in agricultural commodities; 1.3.2. Business banks; 1.3.3. States and the trading of agricultural commodities; 1.4. Physical markets and financial markets; 2. The Financial Commodity Markets.
- 2.1. A financial instrument is a security or a contract that generates a series of financial flows2.2. Physical markets and derivative financial markets; 2.2.1. Physical commodity markets; 2.2.2. Organized financial markets of commodities; 2.3. Large financial operations; 2.3.1. Arbitrage; 2.3.2. Speculation on price increases; 2.3.3. Hedging; 2.3.4. Physical transactions and financial transactions; 3. Futures Contracts and Forward Contracts; 3.1. Futures markets in 2013 and 2014; 3.2. Derivative markets in 2016; 3.3. An overview of futures contracts; 3.3.1. Notations.
- 3.3.2. Gains and losses at the maturity of an elementary operation3.3.3. Closing a position before maturity; 3.4. Arbitrage operations and conditions for no arbitrage; 3.4.1. An elementary example of arbitrage through replication [BOS 02]; 3.4.2. A formal definition of NA [PON 96]; 3.5. Hedging operations; 3.5.1. An elementary example of hedging; 3.5.2. A model for an optimal hedge [PON 96]; 3.6. Speculation; 3.6.1. Speculation and hedging, a model for the optimal position; 3.7. Forward contracts; 3.8. The pricing of futures and forwards; 3.8.1. The bases of the Black model.
- 3.8.2. The dynamic of futures prices3.9. Commodity swaps; 3.9.1. Definition and example; 3.9.2. Pricing a swap; 4. The Storage and Term Structure of Commodity Futures Prices; 4.1. Essential concepts; 4.1.1. Uncertainty, spreads and future markets; 4.2. Normal backwardation; 4.2.1. The diversity of hedgers on futures markets; 4.2.2. The empirical scope of the normal backwardation theory; 4.3. The theory of storage; 4.3.1. Some fundamental concepts; 4.3.2. The theory of storage with occasional stockouts; 4.3.3. Spread and storage; 4.3.4. The concept of convenience yield.
- 4.4. Futures markets and price volatility4.4.1. Hedging and volatility; 4.4.2. Futures markets and information; 4.5. Conclusion; 5. Options Markets; 5.1. The fundamental concepts; 5.1.1. Characteristics of options and a glossary; 5.1.2. The life of an options contract on an exchange; 5.1.3. The risk of gain and the risk of loss on elementary strategies; 5.2. The determinants of the value of an option, the pricing of options; 5.2.1. The general principle behind the pricing of options; 5.2.2. Pricing options and choosing a model; 5.3. Models for estimating the value of an option.
