Discussion:
Discussions TOPIC 1
IMF and euro crisis: Less Cash, More Impact https://www.economist.com/node/21564254
1) 1) Summarize the article (in 300 words)
2) 2) Support or criticize IMF's role in handling the euro crisis? (in 200 words)
You can read the following article to answer (2)
IMF Nations Vow to Prevent New Failures
Bob Davis; 10/13/08; P. A4
https://online.wsj.com/article/SB122372688065025787.html
Discussions TOPIC 2
Euro Debt Crisis Highlights IMF's Renewed Role
https://www.nytimes.com/2010/11/27/business/27fund.html?_r=2&ref=world
1) 1) Summarize the article (in 300 words)
2) 2) Should the IMF be strengthened or weakened? (in 200 words).
You can read the following article to answer (2)
IMF Gets New Role of Serving the G-20
Bob Davis; 10/05/09: p. A10
https://online.wsj.com/article/SB125467478297262465.html
Discussion Summary:
Write a summary (about 500 words) of each of the week's discussions and write about how each discussion influenced their thinking
Discussions are past 6 discussions you've done for me on ECON 301
Discussion Week
Different types of options (puts and calls, rights and warrants) are discussed in chapter 14 from ‘Fundamentals of Investing'. The notion of derivative securities as securities that derive their value from some other asset along with options as one type of derivative is explained. Options represent a contract or an agreement to buy (or sell) a security in the future, whereas owning a security means owning a part of a company (as in the case of owning a stock) or having a position in a loan (as in the case of a bond). Chapter 15 discusses the futures market and the various commodities and financial futures available to investors. It also contains information about investing in tangibles. From the book, ‘Art of Investing', how to complete constructing the portfolio is discussed.
In the light of this information, let's discuss:
1-What is your opinion on the risk and return behavior of various put and call investment strategies and the factors that drive option prices?
2- Explain some of the basic option pricing models and if you would have like to use any in your portfolio project. Why?
3- How would you describe the origins and basic operating characteristics of the futures market? Please give examples that should reflect your understanding of the futures market.
4 - Explain the strategy you would have developed for selecting the futures contract? Discuss your expectations about how the transaction will perform in the portfolio over time until its expiration?
5- Explain what you know about how an investor can use a futures contract to hedge a stock portfolio? Provide a specific example? Explain what you know about how a farmer can hedge a corn crop growing in the field with futures contracts? Provide a specific example?
6. Most Important Things Learned - What are the most important things that you learned from the study of this week's readings?