- hee, eal Mined os the degree % vonishe) Tekoen dhe oectid vobuas ond — > Poviatton /vavation Too mathods, L + Hes uxatla > Rick Hedgirtd, * Nen- measurable => lon wSdina. Risk DS Buss ~ ~S _,. a antema Paobt ws the Poot of managing Bid i tha ph “besints Corp. wil be awed into ates) Foti (ak are Ob WGK SMa Cdiltities, Wen (eur iS) & Price volatility < Foie wisk = Fieri3 CobeSutis ask) tould _ BOP = Paeducs | Precasd | Bt Bo, “Bb o Judge Paoduck , eS aN AZE PIC2 BISK ~ Daivakive 3, debinzd 0 a dered vatuc | tehae volo Gs derived fren sha Value of an | Brdediing ck /\arialles Such as, Conmalites | MPamcal products (shaser, Back index, Beign | Gesamcs amd clobt instxaxumts) i DEWokye UH hax clipen dunt vals but not3, phi, cortrat Seen omd solr hear ra goods (commodities ® Grancel Woes ake fikiod date, ata Atuns price On Dec K made o cath ow *Xbays 105 stock Hes! Cu tunos B fsem “Y’ SLE 10 BES EF Shims i Exercise /srsiva Pye ‘ | > Sxfitalion datta ~ Gateoue The date en which, ato tramtactkion 2 settled. . a eto S price /atsike PS co r ULES 0 Foie at coh se eee tS a ied. a Ere pete S oe ae Sxed, “* ee| volus of derivative depend dhe dithnenic cbetuvean Spot Paro % r | goice. whine, spot pier ut yoriahle(F | Cowan d | mareet Taice) Exerc price da Lixed. | => Seeunite, etre Sequianed Act, 1966 cbbines “st dodvakue o3 - “ oh derivate & a Fioomdol cerinatt bthceam +50 peple BS ell 3g Ge corbriodity | sinansiok asst Grok, Ghanass Index , EbBIIAT Gunomcy % bt sStsomaa) ako Spec od paices syeubed He » Speetieds e eh : dtemmined eigen Place hich aw Bardondiged Fs) + 4Suse s alt. pat ee nares enon | ' ‘ Aisclingy, —- Frdan, — Doty ~ Goering cent Reais sus Prnarscan Commodity Sar . rr 4 S9e ph ——— oes ae eee => Bees Cae Beltlement @basaiys che weil “Gven dhe GuntaxlOTd)- Not traded inake Stete | * Bi pasty, “Or 00 Paxbies Gist Knees g - oer Uc Panes, + Gusterbied — syeeihel — Poicg -_ - di spfone « No mangivo Pla. |Pee Sorteact 5s ain exthairg awaded , er. (yen ote) bles how poeple 7 buy ASL a Bndindal psoduclt( shan, index, — “Gowumdy ZR bbe) ab a Stardondised Pig ’ Standardised dtr & Standand ied Plow as he @ Rixed doy Cleating cAlpslatien (ec) 4 stock J exchamge me = Cat * Suadlemmcen, maT ap 1 Nen otal ea a » ah | Wo BiSK ~ He dence iss an) NT (jasSSRI APoltcation of + Hedging Strakgq + Speatatiag « Ax bitsoggeim '' Aledging 7 “a ase Be - Canes a ~ long hedge saves long pesitien in tforas Gensect The Ghjactive of his Reds vo Peck BAirst a price incwar. wy & Parctivulor anek at Q Arkww poink O time. 8 | Ris Ss abo known ay amen BQy hedge beca , sro Fsm holds aay sn innenkyus ee = shett hedge ts ato Feoten od atliogy hedge hich Fnvslves Henin s Pu ce patente in | and Snancol product, Trea Stand hedge with pectarien sellicg g 0 Pukuae of O ep peiceSs acmpting Be Sisk £9 pri va a; exchange Sumetions Teo ding - Busing @ selling Cleaning - ing the Lablity SetHernamt ~ Poryenemd ree wl? Be- mat afc = Bank afe «, wed, woth, vara = el untqque 107 aoa bey PAN /iadha. “oe oa a at : OMS — F8toch bsoKUT jeuo Hou 4, ag. ! aay Margin - 107. Contre Size — we ASXI68S'= 25,650 we _Srikied margin” not pee ot A Asmouns paid en Be, ae mm : ry tho SIGE ek Ss i sans Oe | aegee “er Compyling PIER loss bs Adti eae oe O& all tho portion. Mesuc 40 manor cM Man) a BW triethamzain, hee Pike, one Cleaned and settled Paoceduno ar pn M2 ds ar Polo uss . aa ictal. Step.ds Recaivinn ete a Customer Dd: R ws so en ic ond £CRive dhe porate ™ decided Brox che oe ai fo Acad thy Fransactton , oe . ta Und Mt +Pamsaction Ook ov — f to dow basis, Psokts/lowes Mau Fronsferre} 2 wesgin account RUC doug, s- “Ny Sa ol ms Piacoa a cfs Senet aking peeuious cox “Spot Price Fg. tie. open 4he pescien Cee) shat) toad cthe end of; tne Setlemont dokp (fost Sumay , Re a + iething” will be dene.Alta netting Sinat pes pes Powe) (ors “wil ie to cae POOLE Aoss Maagin 20) COO Feb2 23 9 2BoO 38000 Fbs as. acto 2000 Ob 2\ uoon FebsS 8 bx feb 25 | Cast stusadess Ob hs meat,Pad pn - 4 \ |g MR X Wank 40 try 1000 Patiand Guin Heck OAS imonth - } Reapers Saar spot pete = 30fa | = Bayer Phan ake sight | +0 accept] meject +e = thin Contrack ds Knoien abs aptions . sOptien Js va Bnancial dexivative Oe SSsaxnd comract. OpHen ds chadge pooduct which miftumings dhe psic sisk OpHen ay excharged traded produc. Ca marker) , -Opten & a Moendal contrat gives du heldst (aerey) das sdghe bac net taal ‘ ee | ae cetenmifed 5t A PSeruwm Rsexmum psiceN bay plianerehinon © 206d dM © prombuunn df % a /acmqote P80 B mm €=20 : 5238. ae Laks to examen 2 epsamiunn © AN Wee aes Cees eed Oe Ba. sok pria= go ee "x0 se 22 BySpok pri @ = 22 E220 ow a Foumiwm 2 aPe Pek open ch a conmce HE He gives ake Holden / menen a algnt bel vee wo cdl amy Koandal paokact ae ox ee Bn. (as) sales Se dS Crickds Go ; © x NRE prions: Lak aaa FO chasing. cxttlonont yet (Spi F- 10 * 00 nth. f a ae a — 4 & Sn oefail ing pe 00 hear tt b Wes "e7 se cn ah ; , (Shon ees LOsgag - Tt Shy ~ ho hag tb is po : 3 hn dy St St m5 at a ~OpBon p ouk ¢ Bho co 3 re 7 % r@itee gery Opko Ho | 2a te of nf a in a Sr eta ily, Shy th, Bodmese x tha - et iy l sxsft ’ ’ oe On wl ot be . ae Blo He a«oy Oplton Aetna Looe Qh ong 4 “ha Money bona ney: ah AL Ke =Mony: \A}O2|2020 Gal opr on (du - eng) Ma-X bugs) Grercixe 751 6 sie = 30 so) Sper Paice aah Opties Pio = 4/- pute nee) @ $>€ oo jk See __ Oak ob ste nore gie = low MPS a GU S22 ©)Mice 0 contatieds ne. mony 4) pe ~ aption Bhan. 2 atggcu, a “ => Oak Ch sho monsys Ame eS ae oo shan St ChWed athe holdin Ae Jove. 49 0. call. apen Certnack os 0 hong Ghomn 8 <€ Js put aptien contcoce Js 08 OE Si eg hun 2 >E- j “Fouke , dh qnttacs_ wlll se sugucti. + ince, the valua Gh dha todnak te zae => At dhe mony? | | Pecotiad 5 sic oS SEE 3 (Shon ZF Qives NO propit fo S88, o - 38 Cau pron Ctnak ot +eG Nataxe ye So a . Sisixa Jexexciv Grice = S42 faa dr call = =10 as , © Find PE “SG. “Gxee an Tet ~~ - b> explain « i apt poie =) = 460 al » a.ras sZ “tod pad Fee icy 3 adn sa 4 ee WD apek Pras a | ee ae a . — seins ~~ oe Goon Bott = 6 a Vale Ls le Lins ape\ale2 {2020 aes Optien_Pesitien : GU (hus ppt ler) - 182, Pet ( sell, shortPlerontians vo indapondumt vets and Ne oh Sen barcoe “dtxectly asowed /determing dust Like ghanes, dens and ucunttien, Te Valuation a opttens cannot be dene ui DCP Carsceunttad Goth Hous) techmyues because sigh R ouakann pHens oe Eph Lunpsedichib'e . Thanabite , Sho followings Poekdey, Ustil datenmnino yoluation ef epHens + J, Geount mankat pstco. 2 2.Expectud volatility coss} Sons (A u So<8)\ Depenis on abe cost a whe produce 3. Sawin Pe | exercise price, “a. Expisalion timeke Volue mod: drdainssi 9 great BSN a = | 26\02|2020 2 Qnksinsic Volue: os Srisinsic vali Ob a ceitract Es dab? @> Poopit mads out of by cabo cab SPHEN'CY put epren Im thus uaslds Grtack Gs $n -tho - monty 5 she Sade Hale Entsinsic volvo Inkbinsic Value of a Pill ‘eption i we fnbsinaic value a! peche spe : Seger Wintec Se loz =I b ‘spat =43 1S = (49 — Value oh dhe contact 9 énesinsic =O ¢ Spot = |o2 \nloe = O Andsinsie -O 710. “Trane she Tnestnste \ velar eee. EA Nensa ep the ee Rue eprren Cree pia. = leo — ind ent {ntsinife Votue Be aka, i a a+ 90; » TOs cuidate ad Dither - :.-,,ic oem Gmepinaic = (0. (Reohie /dn-ahe - b. €-S= 160 -1t0© ishon Paar (yer) ped edGeds Tatinerc Valine » the difierem th Known of 7 Home \obuuwe. “al Eas Nok Of she aiien = Cath | Sesthe —poice Ee oe) Spot pstce = =130 ] Faia ok She Gah = Bs. Jind out inksinaic J Volua amd atime Volun 8 ton 3 a eae a : 3 GU option (Busy _* . Snksingic Value = 16 (\30-R0) “Rre Vole = 03. ae maleOperde Pie: jae Bide Paieons kYzO © 170 Rowmiunn paid = 5) E220 8s ps pe: i INESINAIC vane = Rs _Roes Poomium paid He Vimeo wali = F-5 = i. S-€ el ke Oh ane entsact =O aHksinaic Value =O Wren Voluc = Pxamiurn paid = He eSce cue the Moray Nalue = O° MMESINAIC Val d ant Time Value = Yournivrn = 25 — (hom She Contact un At Aho 220 4 foumium paid = 15 hot ao dys QO FIG And YOu by wo Break Chen Poi = AZOe IS = Bast Sper Pore = 238 ERNGK PQ = 220 frbsinic = 235-220 =1S Move > GY - RenimIS - IS = O. GNo. Psokit ,.n0 g — ae Cio Te #365) 7am Bod cut sak Wie Aad Goh BRERH chien pric. Seo Cexai distsibution assumes tat 7 To) change dn shase pri Klos bineraitg a oe alse aston, “Inui can beans & xd on ona aL, “BP Bocsrusings © inteuse cathe O80 => Raplicating_poxtfolio ¢ — Opies — (chases & O+thin instswmexits_ Noo gros hedge xa Ois as Scllows*s AK XO, AXDs tes ie

BALAQ (eds ell 4. Anksitsic Volug =e UStum dhe. monnat price Ie ds mesw a Fonds nate Se Jr # [oR A = 10% 706 — 464. 64 = A5a. Ab Alos\2o2z0 erat Fhe main abausback fh binemial ab Assumes thot 7% change din Shana price a Memial atstribulien. Bus In peaches rok coma 4t dik to “Sucepike J Combinations of chamaes Lelie “ef Because, fy each Change dasigning @ Ppoattolio ss nok Slee As dhe share prices change over Sihe " ; ‘ps ei staplicat ee * Bn Ader -—s Continuesly, feesTRE, pode arsuime, shal 7 change ane ghoso psices. Yollouss log nosinal dist! wh HL La dfscevenad am 1993. pele Quocpenin Ske ef Optiens are solued. / Setoauslte, a BSM model « ~— 4. Easropensn eptters echy: " 2. Valuation 4 call options Sms "ya = Mo dividends paid Going tho a No Saxes 6) tromBacion ot 5. Sq Resimal AESETB URLS ES Salwar! G-Risk Fea Sate ob Ties Fi Koown B 9. Shat celina Ga penmited: /, wy ~ eea eed: 3, - SC 3: Find ot NCI) B C42) 4 Find cat We vahw os € e-rt Cenkinwous discounting, sable, 6: Westama calawation 1e, 8D f Q. Consider athe bilowing : > S60 4 E= 3 567 Bc § =0- 35 t = Gmonshs 4 3 = a4), Using BSH wih “el ou eh = v do (EG 5) ny (oe ne 7 0-3 ese 0-068293+ 0.925 seg 0.212) -_ Qe OFM GS Jos” =0-9614 - 0-2)2) (50-5493ela La on = 60 YES SO 5 e- By 5 & — §= 0-4 Jaleulats sho salu Gk the ve Pnps WW. SSpe ie}e3| 2020 Unit = V ee Cher oe ae | = —_ - yaar-93 in OS y Loexchange ob theo ahings bh | Bont, ya, TOOTPECPIS -Pelasd $0 dinandat gauss: tod Products Znamdal SWAPS ‘s snancial produces.migok 4 Si BOF ~ Singapdle. BRE EP neat « Charging {exibl for san? gy Rr SG 2) 1g flexible sate 2 elbows _— wre 5 Basic Hyper of SWAPS |. Qntinese wake SwAP 3. Debe +o equity swap S. Commodity SUATzedkmption o debt capita. % EQUETA +0 _Sqquliy SWAP ¢ Oe involves 400 SusAPS) ~ 9 vashon 42 co's ang FOyi ng 4th dividend in $m of Share Phat DB xpowr os gividatel/ peru came! f iclosizez ce Set sone + Too Pokies fe a « ae = Ste ded (Baan ady a « Ccenerite Lancto fi : Braniing decist tne Laccems .to army coco Cae - No cost - boorowing CBI N05, =, Not Aallowsing - other Sl q Standards. ~ — Maintain Profit - a tees —<—— © Ditka Selling vali ie dledging - Paice Volatalins ts al — Rd Monagomont spol 7 ~ Feel ~ Cony decal Quertions ai ; ds Debinz Sw AP Sxpletn “een = — guaAe = 2. ag ese4 UShat o70 She didk: PAA. Uskee faust 3 epnen paicing | 2 Exploun binemiol ue and dts ba eptien potang: 3. What osa dhe axsumptions OBST § GHen ‘oko Sx pried undo BS Mod oe te --ée 7 (hot 2s optien. 6xplein didteunt type, oh eprtens-hinamial dicivedives dm 4ndia. ; 2. who Goa sho pascticipanss in | L@& Disaus dit. ype oo a