Asses valuation Essay Example | Topics and Well Written Essays - 2500 words

Asses valuation - Essay Example Futures: A firm agrees to deliver a certain amount of commodity in a specific date in future, that can be bought and sold at a particular price. These contracts are settled on daily bases on current market price. The future market price is depended on a continuous flow of information from all over the world which requires a high range of transparency. A huge range of factors are such as climatic conditions, political situation, debt fault, refugee, displacement, land reclamation etc. This kind of information in which the people tend to absorb it constantly and change the commodity prices is called price discovery. With the help of some future market the asset can also geographically dispersed, having lots of current price in existence, the contract price which has the shortest time to expiration can serve as proxy for the asset. Hedging is defined as a strategy to reduce the risk in market position while speculation is the position in the way the market move. Hedging and speculation strategies with the derivatives are helpful and enable the companies to manage risk more effectively (Cohen and Palmer, 2004, pp. 29-33). The derivatives do not involved risk but they redistribute the risk among various market participants. Derivatives can be hedge against unfavourable market movement for a premium and it provides opportunity for those who are keen to take risk and to make profit out of this process. It acts as low transaction cost because for high no. of participants are taking part in the market. Derivatives are categorized in two ways, if it put to use wisely than they work effectively but if it is used recklessly than it can cause you loss. Derivatives are used to protect hedge or it can be used by the market participants, it can also be used in market by the participants for speculating of the underlying asset. It can also allow the business to manage effectively, external influences on their

Writing Styles Issues Essay Example | Topics and Well Written Essays - 750 words - 1

Writing Styles Issues - Essay Example Knowledge of the subject helps me bring out my points clearly, and I can state my facts well. The knowledge also helps me know whether my opinion relates to the topic or whether it is off topic. I have also learned that I can know more about the theme of discussion by reading on it prior to writing and taking notes. If I had read and understood well what Weiner discusses in his book, I would have chosen a more suitable topic. When writing my argumentative essay, I need to be more persuasive. My instructor noted in my E1FD essay that a few paragraphs needed to be clearer and more convincing. I learned that to be more persuasive, I must ensure my thesis has two sides to make it debatable. I will then go ahead to convince my readers why my stand is a better pick by disapproving the opposing argument. I can do this by finding the mistakes in logic in the opposite argument or by giving evidence to oppose. In writing a proper essay, I must ensure that my work has no plagiarism. In my E1FD essay, my instructor says I should introduce all quotations correctly and to quote correctly to avoid plagiarism. Quoting what Weiner says in his book without acknowledging it as his words makes my work plagiarized. I have learned that I can ensure there is no plagiarism of my work by having in-text citations. I also have to have a works-cited page with the correct format at the end of my work to help the reader understand where my in-text citations originate. I need to use a hanging indent on my works-cited.