Fundamentals of Financial Instruments. Sunil K. Parameswaran

RULES STOP-LOSS AND STOP-LIMIT ORDERS TRAILING STOP-LOSS ORDERS MARKET TO LIMIT ORDERS EQUIVALENCE WITH OPTIONS VALIDITY CONDITIONS GOOD TILL CANCELED (GTC) ORDERS GOOD TILL DAYS ORDERS ORDERS WITH QUANTITY RESTRICTIONS A POINT ON ORDER SPECIFICATION OPEN-OUTCRY TRADING SYSTEMS ELECTRONIC MARKETS VERSUS OPEN-OUTCRY MARKETS CALL MARKETS NOTES

      21  CHAPTER 13: The Macroeconomics of Financial Markets ECONOMIC GROWTH GROSS DOMESTIC PRODUCT GDP VERSUS GNP INFLATION ADJUSTMENT TRANSNATIONAL COMPARISONS THE BIG MAC INDEX INFLATION TYPES OF INFLATION INTEREST RATES THE FEDERAL BUDGET DEFICIT MEASURES OF BUDGET DEFICITS THE PRIMARY DEFICIT FISCAL POLICY BUDGET DEFICITS AND THE CAPITAL MARKET THE ROLE OF THE CENTRAL BANK BUDGET DEFICITS AND MONETARY POLICY CROSS-BORDER BORROWING CENTRAL BANKS AND FOREIGN EXCHANGE MARKETS STERILIZED AND UNSTERILIZED INTERVENTIONS EXCHANGE RATES ISSUES WITH A RESERVE CURRENCY CROSS-BORDER IMPLICATIONS OF CENTRAL BANK ACTIONS QUANTITATIVE EASING QUANTITATIVE EASING VERSUS OPEN-MARKET OPERATIONS

      22  CHAPTER 14: Interest Rate Derivatives FORWARD RATE AGREEMENTS (FRAs) SETTLING AN FRA DETERMINING BOUNDS FOR THE FRA RATE EURODOLLAR FUTURES CALCULATING PROFITS AND LOSSES ON ED FUTURES LOCKING IN A BORROWING RATE LOCKING IN A LENDING RATE THE NO-ARBITRAGE PRICING EQUATION CREATING A FIXED-RATE LOAN 30-YEAR T-BOND FUTURES CONTRACTS CONVERSION FACTORS INTEREST RATE OPTIONS STATE PRICES CALLABLE AND PUTABLE BONDS CAPS, FLOORS, AND COLLARS CAPTIONS AND FLOORTIONS NOTES

      23  Sources and References CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 CHAPTER 10 CHAPTER 11 CHAPTER 12 CHAPTER 14

      24  Index

      25  End User License Agreement

      List of Tables

      1 Chapter 1TABLE 1.1 Commercial Banks and Depositories (Similarities and Differences)

      2 Chapter 2TABLE 2.1 The Compounding ProcessTABLE 2.2TABLE 2.3 Vector of Cash FlowsTABLE 2.4 Present and Future Values of the Cash FlowsTABLE 2.5 Vector of Cash