Foreign Finance And Derivatives Markets - 944 Words

Influenced by my, who has invested in the capital market for nearly twenty years, I have targeted investment banking as my preferred career goal. I studied Finance as an exchange student at Imperial College Business School this summer. In International Finance and Derivative Markets classes, I was totally obsessed by the dancing figures and logical charts in the financial world. At the same time, the crash of the Chinese Stock Market provoked controversial discussions in my class amongst students and professors from different countries and with diversified backgrounds, especially when talking about the relationships between financial products (for example, Credit Default Swap) and some well-known financial crises, my classmates came up with a deluge of ideas. This experience further confirmed that I had a deep interest and enthusiasm in finance. I was eager to learn about what happens in the background of these activities, hoping to improve my skill set to provide professional analys is and advice to the general public. Hong Kong is a vibrant city and is rated the third in the Global Financial Centers Index in 2014. The HKU MFIN programme is a well-designed finance programme and the four basic courses of this programme based on CFA curriculum equip students with both quantitative and qualitative skills. One stream of the Master of Finance Programme, Corporate Finance, appeals to me most as it complements my career goal to work as an Investment Banker after graduation. ToShow MoreRelatedA report on the hedging strategy of CITIC Pacific Limited1729 Words   |  7 PagesIntroductionThis report is to check the hedging strategy that was used and lead to the huge loss of CITIC Pacific Limited and point out the importance of managing foreign exchange exposure through select appropriate hedging strategies. The huge loss of CITIC Pacific Limited and its cause is discussed in the first part. The importance of hedging and the tools of hedging are respectively reviewed in part two and part three. Finally, suggestions are given out on how to design proper hedging strategiesRead MoreThe Exploration Of Apples Historical Background1115 Words   |  5 Pagesbackground will examine the nature of business activities that will deem relevant. The products and services Apple provides to businesses and consumers; and the geographical exposure from where the products are produced. The analysis will entail foreign exposure that is emphatically in nature to the success that entails the company’s success. Background The company is a California corporation established in 1977, created by Steve Jobs whom has been an innovative to Apple products. Apple createdRead MoreHow Does Exchange Rate Stability Affect Hedging Strategies For Multinational Organizations?832 Words   |  4 Pagesdifferences. If the multinational corporation owns foreign direct investments, and the currency appreciates in relationship to the dollar, there can be a substantial increase in the revenue generated based upon those currency exchange differences. Conversely, if the U.S. dollar strengthens in comparison to the currency of the foreign invested asset, there may be an attenuation of profits or augmentation of losses. Hedging currency fluctuations through derivatives, futures contracts, and operational spreadingRead MoreMcdonalds Risk1250 Words   |  5 Pagesthose risks for the conduct of the audit. Financing and market risk The Company generally borrows on a long-term basis and is exposed to the impact of interest rate changes and foreign currency fluctuations. Debt obligations at December 31, 2007 totaled $9.3 billion, compared with $8.4 billion at December 31, 2006. The net increase in 2007 was primarily due to net issuances of $573 million and the impact of changes in exchange rates on foreign currency denominated debt of $342 million, partly offsetRead MoreAn Analysis Of Investor s Perception For The Investment1571 Words   |  7 Pagesâ€Å"An analysis of investor’s perception for the investment in capital markets in India since globalized period† Varun Agarwal Dr. Vipin Gupta Research Scholar Department of Mgmt Management Department ManagementRead MoreForward Contract1650 Words   |  7 Pages Because of this factor, international markets have increased rapidly, therefore a large number of companies have been particularly interested in global operatings, such as, export trade, import trade, overseas sales (Moosa, 2003). A subsequent significant trouble looming large for multinational firms is a fluctuation of exchange rate because generally international transactions denominate in foreign currency. This state makes it clear thatRead MoreInstruments Used for Hedging Exchange Rate Risks in the Forex Market, Based on the Practices of Hsbc Brazil1464 Words   |  6 PagesInstruments  used for  hedging  exchange rate risks  in the forex market,  based on the  practices  of HSBC  Brazil Final Paper International Financial Management Since Multinational Corporation’s performance is affected by exchange rate fluctuations the  assessment of their vulnerability  relating to unexpected developments in the foreign exchange market is one of the  biggest  challenges  for risk management. Due to the  prevailing volatility of financial markets, finding mechanisms to hedge companies against exchangeRead MoreHedging Tools For A Company s Risk Management Essay905 Words   |  4 Pagestwo important hedging tools in Chapter 5 of the text relating to a company’s risk management are Forwards and Options. These tools will be outlined and defined here, and their relative merits considered, in reference to managing foreign exchanges risks. USES: â€Å"Foreign exchange† is exchanging one currency for another. Thus, â€Å"one can hedge a Euro payment using a forward exchange contract, or debt in Euro, or futures or perhaps a currency swap.† (Giddy, Undated). These particular hedging toolsRead MoreFinancial Markets And Their Roles Essay1665 Words   |  7 PagesFinancial market Financial Markets and Their Roles A financial market is any marketplace that serves as an avenue for the buyers and the sellers to be involved in the trade of assets such as equities, bonds, currencies and derivatives. These markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees, and market forces determining the prices of securities that trade. Financial Market Structure In economic parlance, it is a system which allows people toRead MoreDifferences Between Sole Proprietorship, Partnership, And Corporation841 Words   |  4 Pagesthe debt of the company â€Æ' 2. Explain the following corporate finance terms: Money market: One of the sections of a financial market where securities and financial instruments with short-term maturities are traded is called the money market. Capital market: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. Primary market: The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments