Derivatives Literature review Example | Topics and Well Written Essays - 1750 words

Derivatives - Literature review Example AP, (2011), derivative transactions entail a number of financial contracts such as forwards, collars, futures, floors, caps, options, swaps, deposits, and structured debt obligations. With reference to the writings by Durbin (2011), the origin of derivates is traced back to the 18th century whereby the earliest form of derivatives known as rice futures were been traded on the Dojima Rice Exchange. In the studies conducted by Hull (2009), he stated that derivatives are essentially contracts between two parties who have agreed on certain conditions under which financial transactions are to be settled and he further added that the most commonly used underlying assets in derivative transactions include currencies, interest rates, stocks, bonds, and commodities. Derivative contracts are categorized into two groups that comprise of the exchange-traded derivatives, which are derivatives that are transacted in a specialized derivatives exchange. The second group of derivatives is the private ly traded derivatives that are traded over-the-counter and therefore, the transactions are not undertaken with the assistance or expertise of an intermediary or the exchange platform (Institute for Financial Markets, 2011). An example of the privately traded derivates is the swaps. Additionally, derivatives are categorized as either option products or lock products; Shirreff (2004) stated that option products give buyers certain rights but they are not under any obligation to agree to the contract under the terms stipulated, an example of an option product is interest rates caps. While lock products underpin the parties in the contract to the terms stipulated until the expiry of the contract, examples of lock products include forwards, futures, swaps. It is of essence to note that the... This paper stresses that derivative contracts are categorized into two groups that comprise of the exchange-traded derivatives, which are derivatives that are transacted in a specialized derivatives exchange. The second group of derivatives is the privately traded derivatives that are traded over-the-counter and therefore, the transactions are not undertaken with the assistance or expertise of an intermediary or the exchange platform This essay declares that derivatives are categorized as either option products or lock products; Shirreff stated that option products give buyers certain rights but they are not under any obligation to agree to the contract under the terms stipulated, an example of an option product is interest rates caps. While lock products underpin the parties in the contract to the terms stipulated until the expiry of the contract, examples of lock products include forwards, futures, swaps. It is of essence to note that the classification of derivates is mainly based on four main factors that include the type of underlying assets entwined with the derivate, the relationship between the derivative and the underlying asset, the market that the derivative transaction will take place, and the returns they offer. The parties involved in the over-the-counter derivative transactions include hedge funds and banks, and this market is the largest in the overall derivatives. Because of the fact that transac tions are performed on private level it means that there is minimal disclosure of information to the public concerning the market and for this reason it remain less regulated.

Primo Levi Suvival in Auschwitz Essay Example | Topics and Well Written Essays - 750 words

Primo Levi Suvival in Auschwitz - Essay Example Levi has moments of clarity that contribute to his ability to survive, neither optimism nor pessimism, both of which are deadly. He thinks, "clearly they will kill us, whoever thinks he is going to live is mad, it means that he has swallowed the bait, but I have not" (Levi 24). What saves him is the middle ground, his acceptance that while things could be better, things can always be worse. As he says in the beginning, "Sooner or later in life everyone discovers that perfects happiness is unrealizable, but there are few who pause to consider the antithesis: that perfect happiness is equally unattainable" (Levi 17). It is this perspective that keeps him from either sinking into despair, or losing himself in hope. In the Lager, Levi learns to take the most pleasure in the least reminder of his humanity. Throughout the narrative, food figures prominently into the lives of the starving men. Although there is nothing but bread and soup, a little more bread and soup can be the difference between content and discontent. In "A Good Day" he recalls the wonderful surprise of extra soup and asks, "What more could one want Even our work seems light with the prospect of four hot, dense pints waiting for us in the hut" (Levi 76). By adjusting his expectations, Levi adjusts his will to live. And even more soothing is the prospect of sleep. Any point in which the men can lie down, close their eyes, cover themselves with blankets, is a moment of relief. He relates with joy his assignment to a hospital bed: "a miracle! It is empty! I stretch myself out with delight; it is the first time since I entered the camp that I have a bunk all to myself. Despite my hunger, within ten minutes I am asleep" (Levi 50). In "A Good Day," the presence of the sun makes life a little more bearable. It is a thing that, as free man, they took for granted. Now, "I understood how men can worship the sun" (Levi 71). And even less than a sunny day can help the men bear their burdens. For instance, "The latrine is an oasis of peace" (Levi 68), and other small facets of a typical daily cycle provide a break from the insanity of the Lager. Beside the regular meals and rest hours, the mere anticipation of a break, which "can be almost glimpsed in the fog of the remote future, allowing us to derive a little more strength from the expectation" (Levi 69), is enough to keep him going just a little while longer. In the lager, Levi learns to live in the moment. If something good happens, he will be present and enjoy it as much as he can, without painful thoughts of past or future. When he finds himself in a beautiful, clean, warm laboratory, almost reminding him of his old life, he says, "All this is a gift of fortune, to be enjoyed as intensely as possible and at once; for there is no certainty about tomorrow" (Levi 140). Another little help is that Levi has friends. Although he writes that some men are hypocrites or spies, that men will not help those who cannot help them back, he finds himself fortunate to remain among the company of his best friend, Alberto. He takes courage in "the rare figure of the strong yet peace-loving man against whom the weapons of the night are blunted" (Levi 57). Another friendly connection is found in his countryman, Lorenzo, who gave him extra food for six months. Although every haftling lived with the