英语论文网

      与利率风险进行套期保值的目的是把利率适用于未来。如果利率上升，未来的价格将下降，然后对利率的提高，套期保值的需要未来要出售。另一方面，如果利率下降，未来的价格会上涨，进而反对率下降的套期保值需要未来要购买。包括利率风险，企业财务主管，往往需要在期货市场的多头在现货市场的损失补偿，因为现有的存款将翻转或因为即将到来的现金流量预计将投资。利率期权的购买者提供了正确的选择，而非义务，买入或卖出的作家在当前约定价格。在利率本身的选项，和另一个选择是潜在的金融期货交易所利率期权等。如果利率下降，套期保值需要一个很长的电话是在打击购买期货权；如果利率上升，套期保值的需要在罢工权长期把卖出期货。随着利率期货价格的上升和下降，长期看跌期权将获得对利率增长的内在价值。

      How futures and options could be used to hedge the risk

      The objective of hedging with financial interest rate risk is to lock in the interest rate applicable in the future. If interest rates rise, the future price will fall, and then the hedging against an increase in rates requires future to be sold. On the other hand, if interest rates fall, the future price will go up, and then the hedging against a fall in rate requires future to be purchased. To cover the interest rate risk, a corporate treasurer tends to take long position in futures market to offset loss in cash market, because existing deposits will be rolled over or because an forthcoming cash flow is expected and will be invested. Interest rate option provides purchasers an option with the right, not obligation, to buy from or sell to the writer at price agreed today. There are options on the interest rate themselves, and another option is on underlying financial futures such as LIFFE interest rate options. If there is a fall in interest rates, hedging requires a long call which is the right to buy futures at strike; and if the interest rate rises, hedging requires a long put for the right to sell futures at strike. With the rise of interest rate and fall of futures price, a long put option will gain an intrinsic value against the increase in interest rate.
      The caps are interest rate option structures which pay off if interest rate rises. It consequently used by floating rate borrowers/issuerhttps://www.51lunwen.org/fm/ s to hedge against interest rate rising. While a lender or investor should floor his deposits to hedge against interest rate falling.

Hedging strategy

      Boakes will receive a cash flow of ￡20m in July 2010 and in a period of 6 months the cash asset requires a hedging against rise of interest rate. The risk adverse attitude indicates the treasury manager to act as a hedger. Since the Boakes can invest in short-term LIBOR, the sterling future will be priced on the index basis of LIBOR.