2015-08-21
576
Ex.1 Find the words in the text that are in the obvious sense the opposite of the terms below
Appreciate, call, discount, drought, floating, hedging, spot market, strike price
Ex.2 Mach up the following words and definitions
| 1. futures 2. options 3. commodities 4. derivatives 5. hedging 6. speculation | A. contracts giving the right but not the obligations to buy or sell a security, a currency, or a commodity at a fixed price during a certain period of time. B. contracts to buy or sell fixed quantities of a commodity, currency or a financial asset at a future date, at a price fixed at the time making the contract C. a general name for all financial instruments whose price depends on the movement of another price D. buying securities or other assets in the hope of making a capital gain by selling them at a higher price (or selling them in the hope of buying them back at a lower price E. making contracts to buy or sell commodity or financial asset at a pre-arranged price in the future as a protection or ‘insurance’ against price changes F. raw material or primary products (metals, cereals, coffee, etc.) that are traded on special markets |
Ex.3 Complete the following sentences
1 the difference between the futures and forward contracts is ….
2. producers and buyers often choose to hedge because ….
3. Speculators can make money on currency futures if ….
4. If you believe that a share price will rise, possible option strategies include ….
5. On the contrary, if you think the share price will fall, possible option strategies include ….
6. The risk with currency and interest rate swaps is that ….
