1.

Record Nr.

UNINA9910894224503321

Titolo

Communications in mathematical biology and neuroscience : CMBN

Pubbl/distr/stampa

London, : Science & Knowledge Publ. (SCIK), 2013-

Descrizione fisica

Online-Ressource

Disciplina

510

570

Soggetti

Zeitschrift

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Periodico

Note generali

Gesehen am 10.12.13

2.

Record Nr.

UNINA9910956154303321

Autore

Lu Yinqiu

Titolo

Financial Instruments to Hedge Commodity Price Risk for Developing Countries / / Yinqiu Lu, Salih Neftci

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2008

ISBN

9786612840395

9781462397181

1462397182

9781452794501

1452794502

9781451868685

1451868685

9781282840393

1282840398

Edizione

[1st ed.]

Descrizione fisica

1 online resource (22 p.)

Collana

IMF Working Papers

Altri autori (Persone)

NeftciSalih

Disciplina

338.52091724

Soggetti

Prices - Developing countries

Commercial products - Economic aspects - Developing countries

Revenue - Developing countries

Options (Finance) - Developing countries

Banks and Banking

Capital and Ownership Structure

Commercial products



Commodities

Commodity Markets

Commodity prices

Credit default swap

Credit

Derivative securities

Finance

Financial Instruments

Financial Risk and Risk Management

Financial risk management

Financial services law & regulation

Financing Policy

Goodwill

Hedging

Institutional Investors

Investment & securities

Investments: Commodities

Investments: Options

Macroeconomics

Monetary economics

Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Money and Monetary Policy

Non-bank Financial Institutions

Options

Pension Funds

Prices

Value of Firms

Developing countries Economic policy

Developing countries Economic conditions

Chile

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"January 2008."

Nota di bibliografia

Includes bibliographical references (p. 19-20).

Nota di contenuto

Contents; I. Introduction; II. Smooth fluctuations in Commodity Revenue Collections-Option Transactions; A. Plain Vanilla Options; Figures; 1. A Put Option Structure; B. Risk Reversals; Tables; 1. Prices of ATM Options; 2. Prices of 20 Percent OTM Options; 2. A Zero Premium Risk Reversal Structure; C. Barrier Option Structures; 3. Prices of the Up-and-Out Put Options: H=120; 3. A Knock-out Option; III. Smooth Borrowing Cost-A Structured Product; A. The Instrument; B. Intermediary; 4. The Structure of the New Instrument; C. Pricing; 5 The Involvement of Investment Bank as an Intermediary

Sommario/riassunto

Many developing economies are heavily exposed to commodity markets, leaving them vulnerable to the vagaries of international commodity prices. This paper examines the use of commodity options-



including plain vanilla, risk reversal, and barrier options-to hedge such risk. It then proposes the use of a new structured product-a sovereign Eurobond with an embedded option on a specific commodity price. By extracting commodity price risk out of the bond, such an instrument insulates the bond default risk from commodity price movements, allowing it to be marketed at a lower credit spread. The product is also designed to help developing countries establish a credit derivatives market, which would in turn enhance the marketability and liquidity of sovereign bonds.