Derivatives Markets
32 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the term used to describe the current or going price of currencies in the foreign-exchange market?

Spot price

What is the term used to describe forward transactions in the foreign-exchange market?

Settlement of the transaction occurs in more than two working days in the future

What is the name of the market that provides a mechanism for the transfer of purchasing power from one currency to another?

Foreign-exchange market

What is the term used to describe the retail and wholesale segments of the foreign-exchange market?

<p>FOREX or FX market</p> Signup and view all the answers

What is the term used to describe the type of market that is characterized by efficiency?

<p>Foreign-exchange market</p> Signup and view all the answers

What is a characteristic of a futures contract?

<p>A specific quantity, quality, location, and time at an agreed price</p> Signup and view all the answers

What is the primary difference between a call option and a put option?

<p>A call option gives the right to buy, while a put option gives the right to sell</p> Signup and view all the answers

What is the primary distinction between money markets and capital markets?

<p>Term of the financial instruments, with money markets having terms less than one year and capital markets having terms greater than one year</p> Signup and view all the answers

What is the purpose of derivatives in financial markets?

<p>To manage risk</p> Signup and view all the answers

What is the outcome of a futures contract at maturity?

<p>A cash settlement</p> Signup and view all the answers

What is the difference between a public offering and a private placement of securities?

<p>A public offering is open to the public, while a private placement is limited to a select group of investors</p> Signup and view all the answers

What is an example of a long-term debt security?

<p>A debenture</p> Signup and view all the answers

What is the primary characteristic of an options contract?

<p>The right, but not the obligation, to buy or sell the underlying asset</p> Signup and view all the answers

What is the primary difference between securities issued through a stockbroking firm and a private placement?

<p>Securities issued through a stockbroking firm are offered to the general public, whereas private placements are offered to a limited number of investors, usually majority owners.</p> Signup and view all the answers

How do primary markets contribute to the economy?

<p>Primary markets increase the total number of financial assets in the economy by raising new funds for businesses.</p> Signup and view all the answers

What is the significance of secondary markets in the economy?

<p>Secondary markets add marketability and liquidity to primary markets, and are essential for the primary markets to exist.</p> Signup and view all the answers

What is the role of the Australian Securities Exchange (ASX)?

<p>The ASX is a major primary and secondary equity market, and also provides a secondary market for debentures, notes, and governmental bonds.</p> Signup and view all the answers

What is the purpose of the ASX listing rules?

<p>The ASX listing rules aim to provide an efficient, honest, competitive, and informed market for trading.</p> Signup and view all the answers

What is the difference between the primary and secondary bond markets?

<p>The primary bond market is where new bonds are issued, whereas the secondary bond market is where existing bonds are traded.</p> Signup and view all the answers

What is the significance of the money market and the capital market?

<p>Both the money market and the capital market have primary-market and secondary-market aspects, facilitating the flow of capital between investors and businesses.</p> Signup and view all the answers

What is the role of the Sydney Futures Exchange (SFE) in the Australian financial markets?

<p>The SFE is a key component of the Australian Securities Exchange (ASX), providing a platform for trading derivatives and futures contracts.</p> Signup and view all the answers

What is the key difference between a public offering and a private placement of securities, and how do these two options impact the type of investors involved and the level of personal interaction?

<p>A public offering is a sale of securities to the general public through a stockbroking firm, where the company selling securities does not meet the ultimate purchasers. In contrast, a private placement is a sale of new securities to a limited number of investors, usually offered to majority owners, with a more personal interaction.</p> Signup and view all the answers

How do primary markets contribute to the economy, and what is the significance of secondary markets in facilitating the functioning of primary markets?

<p>Primary markets contribute to the economy by increasing the total number of financial assets, allowing businesses to raise new funds. Secondary markets add marketability and liquidity to primary markets, enabling the resale of existing securities, which is essential for the primary markets to exist.</p> Signup and view all the answers

What is the role of the Australian Securities Exchange (ASX), and how does it contribute to the efficiency of the Australian financial markets?

<p>The ASX is a major primary and secondary equity market, providing an efficient, honest, competitive, and informed market for trading. It is a publicly listed company that facilitates the trading of various securities, including debentures, notes, and governmental bonds.</p> Signup and view all the answers

How do derivatives markets, such as futures contracts, contribute to the management of risk in financial markets, and what is the significance of the Sydney Futures Exchange (SFE) in this context?

<p>Derivatives markets, including futures contracts, enable investors to manage risk by hedging against potential losses. The SFE is a key player in the Australian derivatives market, providing a platform for trading futures contracts.</p> Signup and view all the answers

What is the difference between the money market and the capital market, and how do these two markets interact in the economy?

<p>The money market deals with short-term debt securities, while the capital market deals with long-term debt and equity securities. Both markets interact in the economy by providing a continuum of financing options for businesses and investors.</p> Signup and view all the answers

What is the typical location of glycolipids in the plasma membrane?

<p>The outer monolayer</p> Signup and view all the answers

What is the role of transverse diffusion in maintaining membrane asymmetry?

<p>It helps maintain asymmetry by moving lipids from one monolayer to the other</p> Signup and view all the answers

What is the characteristic of many membrane proteins?

<p>They are glycosylated</p> Signup and view all the answers

What is the name of the structure formed by carbohydrate groups attached to a glycolipid?

<p>Glycocalyx</p> Signup and view all the answers

What is the function of lipid rafts in the membrane?

<p>They are involved in membrane-membrane barriers and protein trafficking</p> Signup and view all the answers

What is the term for the carbohydrate groups attached to a glycolipid?

<p>Glycan</p> Signup and view all the answers

Study Notes

Derivatives Markets

  • Derivatives are financial instruments derived from the value of an underlying asset, often used to manage risk.
  • Examples of derivatives: Futures, options, and swaps.
  • Derivatives can be traded through an organized exchange or over-the-counter (OTC).

Futures Markets

  • Futures contracts are traded in futures markets, with legally binding agreements to buy or sell the underlying financial instrument or commodity.
  • Agreements specify quantity, quality, location, future time, and price.
  • Upon maturity, these contracts end up as a cash settlement.

Options Markets

  • Options contracts give the holder the right (but not obligation) to buy or sell the specified commodity or financial instrument on or before a specified date.
  • Call option: right to buy an asset.
  • Put option: right to sell an asset.
  • Variety of options-type products exist.

Money and Capital Markets

  • Money markets: short-term financial instruments, typically with terms less than one year.
  • Examples: Treasury notes, certificates of deposit, commercial bills, and promissory notes.
  • Capital markets: long-term debt and equity securities, typically with terms greater than one year.
  • Examples: loan notes, debentures, shares, leases, and convertible securities.

Public Offerings and Private Placements

  • Companies can raise external capital through public offerings or private placements of securities.
  • Public offerings: new securities offered to the public.
  • Organised security exchanges and over-the-counter markets facilitate trading.

The Bond Market

  • Firms borrow money by selling debt securities in the debt market.
  • Debt securities with maturity under one year are called notes, while those with longer maturities are called bonds.
  • Most bonds pay a fixed interest rate, which never changes over its lifetime.

Foreign-Exchange Markets

  • Foreign-exchange markets facilitate the transfer of purchasing power between currencies.
  • This is an international network of licensed foreign-exchange dealers and customers.
  • Market is divided into retail and wholesale segments.
  • Major types of transactions: spot transactions, forward transactions.

Primary and Secondary Markets

  • Primary markets: selling of new securities to raise new funds for businesses, increasing the total number of financial assets in the economy.
  • Secondary markets: reselling of existing securities, adding marketability and liquidity to primary markets.

The Australian Securities Exchange

  • Result of the merger between ASX and SFE in 2006.
  • Major primary and secondary equity market, with secondary markets for debentures, notes, and governmental bonds.
  • ASX is a publicly listed company with its own listing rules, aiming to provide an efficient and honest market for trading.

Derivatives Markets

  • Derivatives are financial instruments derived from the value of an underlying asset, often used to manage risk.
  • Examples of derivatives: Futures, options, and swaps.
  • Derivatives can be traded through an organized exchange or over-the-counter (OTC).

Futures Markets

  • Futures contracts are traded in futures markets, with legally binding agreements to buy or sell the underlying financial instrument or commodity.
  • Agreements specify quantity, quality, location, future time, and price.
  • Upon maturity, these contracts end up as a cash settlement.

Options Markets

  • Options contracts give the holder the right (but not obligation) to buy or sell the specified commodity or financial instrument on or before a specified date.
  • Call option: right to buy an asset.
  • Put option: right to sell an asset.
  • Variety of options-type products exist.

Money and Capital Markets

  • Money markets: short-term financial instruments, typically with terms less than one year.
  • Examples: Treasury notes, certificates of deposit, commercial bills, and promissory notes.
  • Capital markets: long-term debt and equity securities, typically with terms greater than one year.
  • Examples: loan notes, debentures, shares, leases, and convertible securities.

Public Offerings and Private Placements

  • Companies can raise external capital through public offerings or private placements of securities.
  • Public offerings: new securities offered to the public.
  • Organised security exchanges and over-the-counter markets facilitate trading.

The Bond Market

  • Firms borrow money by selling debt securities in the debt market.
  • Debt securities with maturity under one year are called notes, while those with longer maturities are called bonds.
  • Most bonds pay a fixed interest rate, which never changes over its lifetime.

Foreign-Exchange Markets

  • Foreign-exchange markets facilitate the transfer of purchasing power between currencies.
  • This is an international network of licensed foreign-exchange dealers and customers.
  • Market is divided into retail and wholesale segments.
  • Major types of transactions: spot transactions, forward transactions.

Primary and Secondary Markets

  • Primary markets: selling of new securities to raise new funds for businesses, increasing the total number of financial assets in the economy.
  • Secondary markets: reselling of existing securities, adding marketability and liquidity to primary markets.

The Australian Securities Exchange

  • Result of the merger between ASX and SFE in 2006.
  • Major primary and secondary equity market, with secondary markets for debentures, notes, and governmental bonds.
  • ASX is a publicly listed company with its own listing rules, aiming to provide an efficient and honest market for trading.

Protein Folding and Stability

  • Disulfide bonds confer considerable stability to the protein conformation.
  • Polypeptide folding is facilitated by molecular chaperones, which bind to polypeptide chains during the early stages of folding.
  • Molecular chaperones can rescue misfolded proteins and fold them properly, or destroy them if they are incorrectly folded.

Molecular Chaperones

  • Stress conditions can cause protein misfolding, and cells respond by trying to assist refolding of proteins using chaperones.
  • Two of the most widely occurring chaperone families are Hsp70 and Hsp60 (heat-shock protein).

Assembly of Proteins and Cellular Structures

  • A higher level of assembly is possible in the case of proteins that are organized into multiprotein complexes.
  • The same principles of self-assembly that apply to polypeptides also apply to the assembly of more complex structures, such as membranes.
  • Membranes self-assemble due to the interaction of phospholipids, cholesterol, proteins, and other components.

Macromolecules and Cell Function

  • Macromolecules are synthesized by stepwise polymerization of monomers.
  • Nucleic acids, proteins, carbohydrates, and lipids are important macromolecules in the cell.
  • Macromolecule assembly and polymerization are crucial for cell function.

Proteins

  • Proteins must fold into their correct three-dimensional shape to be functional.
  • Many proteins spontaneously fold into their biologically functional state.
  • The native conformation of a protein can be altered by changing conditions.
  • Denaturation leads to loss of biological activity, and renaturation can restore protein function.

Covalent Bonds and Protein Conformation

  • Covalent disulfide bonds are formed between the sulfur atoms of two cysteine residues.
  • Disulfide bonds can be broken only by reduction.

Lipids and Membranes

  • Glycolipids are lipids containing a carbohydrate and occur largely on the outer monolayer of the plasma membrane.
  • Fatty acids are essential to membrane structure and function.
  • Unique lipid composition of organelle membranes helps maintain membrane asymmetry.
  • Lipids move freely and randomly within their monolayer, but transverse diffusion maintains asymmetry.
  • Other factors influencing membrane fluidity include membrane-membrane barriers, poorly mobile clusters, and lipid rafts.

Membrane Proteins

  • Membrane proteins are oriented asymmetrically across the lipid bilayer.
  • Many membrane proteins are glycosylated.
  • Roles of glycoproteins include cell-cell recognition and cell signaling.
  • Glycocalyx is a carbohydrate-rich layer on the cell surface.
  • Lipid trafficking and storage play important roles in cellular function.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Australian Financial Markets Chapter 8 PDF
Lecture 1_Introduction to Cells_GP compressed(1) (3).pptx

Description

Learn about derivatives, financial instruments based on an underlying asset, and their use in managing risk. Examples include futures, options, and swaps.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser