## 数学代写|金融衍生品代写Financial derivatives代考|FINE448

statistics-lab™ 为您的留学生涯保驾护航 在代写金融衍生品Financial derivatives方面已经树立了自己的口碑, 保证靠谱, 高质且原创的统计Statistics代写服务。我们的专家在代写金融衍生品Financial derivatives代写方面经验极为丰富，各种代写金融衍生品Financial derivatives相关的作业也就用不着说。

• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础

## 数学代写|金融衍生品代写Financial derivatives代考|Centralized Clearing

As an OTC derivative involves potential payments between the parties in the future, the counterparty risk that one party does not pay as obligated in the contract can not be neglected. To mitigate the counterparty risk, the long and short parties of a derivative contract may transact with the “Central Clearing House” which covers the risk by a collateral deposit system known as the margining system.

For illustration purpose, we take the case of futures contracts transacted at a Futures Exchange serving as the central clearing house.

• The buyer and seller should have their “margin account” in place before trading futures.
• At the contract inception, both parties will deposit an “initial margin”, fixed by the exchange according to the type and price of futures, as collateral which are typically cash or government bonds.
• At the end of each trading session, each party will have their margin account debited or credited for the daily P/L (Profit and Loss, or PnL).
• A minimum margin level called “maintenance margin” is required for every margin account. If the account value is below this level, a “margin call” will be issued for bringing back the account to the level of initial margin.

## 数学代写|金融衍生品代写Financial derivatives代考|OTC Derivatives Documentation

The financial institutions offering derivative products and services control and monitor their counterparty risk with the trading counterparty. Some products such as a deposit or a structured note imply one-way counterparty risk where the end investor takes the counterparty risk of the financial institution but the financial institution has no risk from the end investor. However, in some other products such as forward and swap, both parties are taking counterparty risk. The growth of OTC derivatives business prompted the standardization for the contract terms as well as the counterparty credit risk management which are widely used by the institutions and corporates actively involved in financial market.

ISDA (International Swaps and Derivatives Association) Master Agreement, initially developed in the 1980 s to cover the IRS and currency swaps, has been progressively updated to include the derivatives such as forward, swap and option linked to equities, commodities and funds. It sets out standard terms applied to all trades between the two parties.

In general, two parties set up their trading relationship for OTC derivatives by negotiating the applicability and eventual adjustment of the standard terms. The document containing the agreed terms is the ISDA Master Agreement signed by both parties.

CSA (Credit Support Annex) is the document for credit support (i.e. collateral) for derivative transactions. It defines the acceptable collaterals with the “haircuts”. In particular, it defines the “Threshold” which is the consolidated MtM level of all the trades to trigger the margin call. The “Independent Amount (IA)” is the initial margin (collateral) required by one party (usually the dealer) to the other party (usually the end user) for mitigating the counterparty risk linked to an OTC transaction. It is returned only after the termination of the transaction. Its level depends on the volatility of the mark-to-market value of the trade as well as the credit worthiness of the counterparty. During the life of the trade, “variation margin” will be exchanged according to its mark-to-market.

The institutions and corporates actively transacting derivatives usually establish an ISDA/CSA Master Agreement with their counterparties. Normally, the credit agreement between two financial institutions is a two-way CSA in which both parties may post margins for their OTC trades. Between a financial institution and a corporate (especially the small ones), the credit agreement may be a one-way CSA, meaning that only the corporate posts margins to the financial institution. Under a master agreement (ISDA/CSA or any bespoke master agreement), the specific terms and conditions of each OTC derivative trade will take a short form called term sheet or transaction supplement. The individual investors, small corporates and other nonactive entities involved in financial market normally trade with financial institutions with a bespoke agreement or a long form confirmation which contains all terms and conditions for each trade.

.

## 数学代写|金融衍生品代写金融衍生品代考|OTC衍生品文档

ISDA(国际掉期和衍生品协会)主协议最初制定于20世纪80年代，涵盖IRS和货币掉期，现已逐步更新，包括与股票、大宗商品和基金相关的远期、掉期和期权等衍生品。它列出了适用于双方之间所有交易的标准条款

CSA(信用支持附件)是衍生交易的信用支持(即抵押品)文件。它用“削发”来定义可接受的抵押品。特别地，它定义了“阈值”，即触发追加保证金通知的所有交易的综合MtM水平。“独立金额(IA)”是一方(通常是交易商)向另一方(通常是最终用户)要求的初始保证金(抵押品)，以降低与场外交易相关的交易对手风险。它只在事务终止后返回。它的水平取决于交易的按市值计价价值的波动性以及交易对手的信用价值。在交易期间，“变动保证金”将根据其市值计价进行兑换

## 有限元方法代写

tatistics-lab作为专业的留学生服务机构，多年来已为美国、英国、加拿大、澳洲等留学热门地的学生提供专业的学术服务，包括但不限于Essay代写，Assignment代写，Dissertation代写，Report代写，小组作业代写，Proposal代写，Paper代写，Presentation代写，计算机作业代写，论文修改和润色，网课代做，exam代考等等。写作范围涵盖高中，本科，研究生等海外留学全阶段，辐射金融，经济学，会计学，审计学，管理学等全球99%专业科目。写作团队既有专业英语母语作者，也有海外名校硕博留学生，每位写作老师都拥有过硬的语言能力，专业的学科背景和学术写作经验。我们承诺100%原创，100%专业，100%准时，100%满意。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。

## 数学代写|金融衍生品代写Financial derivatives代考|ECON6042

statistics-lab™ 为您的留学生涯保驾护航 在代写金融衍生品Financial derivatives方面已经树立了自己的口碑, 保证靠谱, 高质且原创的统计Statistics代写服务。我们的专家在代写金融衍生品Financial derivatives代写方面经验极为丰富，各种代写金融衍生品Financial derivatives相关的作业也就用不着说。

• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础

## 数学代写|金融衍生品代写Financial derivatives代考|Performance Measures

There are many indicators that are used for measuring the performance of an investment strategy or an investment fund (aggregated form of investment) other than its total return $R$. The most popular ones include

Sharpe ratio $=(R-r) /$ “standard deviation of $(R-r)$ “, where $r$ is the return of a risk-free investment. ${ }^3$ It is the most used measure for risk-adjusted excess return. Information ratio $=\left(R-R_{B M}\right) /$ “standard deviation of $\left(R-R_{B M}\right)$ “, where $R_{B M}$ is the return of the relevant benchmark (e.g. an equity index, if the investment portfolio is composed of stocks).
Sortino ratio $=(R-r) /$ “downside deviation”, where “downside deviation” is the standard deviation obtained with negative returns only. ${ }^4$ This measure is prelerred by people who consider that the Sharpe ratio punishes the “good risk” as the positive returns are also used in its standard deviation calculation.
Maximum drawdown: the peak-to-trough decline in percentage during the considered period of an investment. For the considered period $\left[t_1, t_2\right]$, it is defined as $\frac{m\left(\hat{t}, t_2\right)}{M\left(t_1, t_2\right)}-1$, where $M\left(t_1, t_2\right)$ is the highest price which is achieved at time $\hat{t}$, and $m\left(\hat{t}, t_2\right)$ is the lowest price after $\hat{t}$.

## 数学代写|金融衍生品代写Financial derivatives代考|Financial Markets

A financial market designates the aggregate of participants, organizations and facilities in which people trade financial securities (e.g. stocks and bonds), currencies and commodities at prices that reflect supply and demand. The participants include financial institutions (such as banks, insurance companies, pension funds, mutual funds, hedge funds), individual investors and corporations.
The financial market can be detailed by the type of services it offers:
Capital markets: which provide financing through the issuance of shares and debts, and enable the subsequent trading thereof. Capital markets include debt and equity markets.

• Equity market (also known as Stock market) allows the participants to buy and sell stocks of (publicly traded) companies. The value of a stock reflects the view about the expected dividend payments, future earnings, and resources that the company will control.
• Debt market (or Fixed-income market) includes bond market which deals in government, corporate and other bonds for long term financing, and money market for short term (up to 1 year) debt securities such as bank deposits, treasury bills, certificates of deposit, commercial papers, etc.
Foreign exchange market: where currencies are bought and sold. Commodity market: where commodities such as precious metals, industrial metals, energy products and agricultural products are traded. Futures contracts are the most convenient instruments for commodities trading activities. A futures contract may be sold out before the commodity is due to be delivered.
Derivatives market: where futures, swaps, options and other derivatives are transacted.
The financial market can also be classified with other criteria, such as
Primary market: where new issues are first sold through IPOs (Initial Public Offerings). The primary market business for debts and stocks is covered respectively by DCM (Debt Capital Market) and ECM (Equity Capital Market) divisions of the Corporate Finance entity in the investment banks.
Secondary market: for all subsequent trading after IPO between market participants. It constitutes the support for the financial products for investment and risk management.

## 数学代写|金融衍生品代写金融衍生品代考|绩效指标

Sortino比值$=(R-r) /$“下行偏差”，其中“下行偏差”是仅在负收益情况下获得的标准偏差。${ }^4$这些人认为夏普比率惩罚了“良好风险”，因为在其标准差计算中也使用了正回报。

## 有限元方法代写

tatistics-lab作为专业的留学生服务机构，多年来已为美国、英国、加拿大、澳洲等留学热门地的学生提供专业的学术服务，包括但不限于Essay代写，Assignment代写，Dissertation代写，Report代写，小组作业代写，Proposal代写，Paper代写，Presentation代写，计算机作业代写，论文修改和润色，网课代做，exam代考等等。写作范围涵盖高中，本科，研究生等海外留学全阶段，辐射金融，经济学，会计学，审计学，管理学等全球99%专业科目。写作团队既有专业英语母语作者，也有海外名校硕博留学生，每位写作老师都拥有过硬的语言能力，专业的学科背景和学术写作经验。我们承诺100%原创，100%专业，100%准时，100%满意。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。

## 数学代写|金融衍生品代写Financial derivatives代考|AEM4210

statistics-lab™ 为您的留学生涯保驾护航 在代写金融衍生品Financial derivatives方面已经树立了自己的口碑, 保证靠谱, 高质且原创的统计Statistics代写服务。我们的专家在代写金融衍生品Financial derivatives代写方面经验极为丰富，各种代写金融衍生品Financial derivatives相关的作业也就用不着说。

• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础

## 数学代写|金融衍生品代写Financial derivatives代考|Investable Assets and Instruments

The assets for investors in the financial market are mainly liquid investable assets such as bonds, stocks, foreign currencies and commodities. The liquidity of an asset is measured by the easiness and cost to convert it into cash. Not all assets are transferable, for instance, the bank deposits. A transferable asset traded in the market is often identified by a code given by a well-recognized institution. ${ }^1$

The basic types of assets are debts and equities which are directly linked to the economical activities. The debt securities take the form of bonds, bills, deposits, etc. Equity securities issued by corporations are called stocks or shares representing claims of the ownership of the corporation. One can invest directly in a certain asset and receive the return or performance of the asset. For taking benefit of the price drop of an asset, one may borrow the asset, sell it at its current price and then, buy the asset back in the future (hopefully at a lower price) and return it to the lender.

A derivative contract (or simply, derivative) is a financial instrument that derives its value from the price(s) of some specific transferable asset(s) or security(ies) (called underlying asset(s) or simply underlying(s)) such as equity securities, fixed-income securities, foreign currencies, or commodities. The most common derivatives are forward/futures contracts, swaps and options.

A forward is an agreement between two parties in which the buyer will purchase a certain asset from the seller at a pre-agreed price, called strike price or exercise price, at a future time (called expiry date or maturity date). Mathematically, the payoff for the buyer is $S_t-K$, where $S_t$ is the asset’s price at expiry time $t$ and $K$ is the delivery price. The level $K$ which makes the forward contract value at zero is called the (market) forward price of the underlying asset.

A futures contract is a standardized forward contract listed at an organized market such as a stock exchange.

A swap is a derivative contract whereby two counterparties exchange cash flows or securities. The standard interest rate swap (IRS) is a typical example in which one party will pay the cash flows based on a pre-agreed fixed rate and receive the floating rate based cash flows applied to a specified notional amount.

Roughly speaking, an option is a financial instrument which offers a return (called payoff or payout) that is asymmetric to the upside and downside performance of the underlying asset(s). The basic options (nicknamed as Vanilla options) are call options and put options. A call option gives the owner the right but not the obligation to buy a certain asset from the seller at a pre-agreed price, called the strike price or exercise price. The payoff at expiry $t$ of a call option is $\max \left{S_t-K, 0\right]$. Similarly, a put option gives the owner the right but not the obligation to sell the underlying asset at the strike price (or exercise price). The payoff at expiry $t$ is $\max \left{K-S_t, 0\right}$. Any option other than a Vanilla option is referred to as an exotic option, for instance, Barrier option, Asian option, etc.

A structured product is a pre-packaged investment strategy based on derivatives which offers a customized risk-return objective. In the past two decades, we have witnessed a revolutionary development for structured products and derivatives in financial markets around the world.

## 数学代写|金融衍生品代写Financial derivatives代考|Investment Returns and Risks

The investment return of a non-dividend paying asset for the period between time $s$ and time $t(s<t)$, is defined as:
$R=\frac{P_t-P_s}{P_s} \quad$ or $\quad R=\frac{P_t}{P_s}-1, \quad$ where $P_t$ is the price of the asset at time $t$

The return rate is an annualized concept in general. There are different types of return rates. For instance, the IRR (Internal Rate of Return) is the value of $r$ which makes the following equality:
$P_t=P_s(1+r)^\tau$, where $\tau$ represents the number of years for the period $[s, t]$.
Usual measures for the rate of return of an asset or a portfolio are
Price return: it is measured by the portfolio’s value at the beginning and the end of the period. The dividend payments during the period are ignored.
Total return: it is obtained with all the dividends re-invested back into the assets of the portfolio with the same proportion. It represents the return of a fully funded portfolio.
Excess return: It is defined as the portfolio’s total return minus the financing cost or a relevant interest rate reference. It represents the return of a self-financed portfolio.

Example 1.1 Consider two assets: Asset 1 and Asset 2 . Asset 2 pays a $\$ 1$dividend per unit at time$t$. The financing cost is$1 \%$on the borrowed amount. Note that the total return for Asset 2 is calculated from$\frac{99+1}{90}-1$, i.e., assuming that the$\$1$ dividend per unit of the asset is reinvested.

In financial market, the term long means “in the possession of” and the term short means the opposite. A long position of an asset will realize a profit if the asset price goes up and suffer a loss if the asset price drops. The short position of an asset will realize a profit if the asset’s price drops and lose money if the asset’s price goes up. The short position can be built by borrowing the asset and then selling it to the market. For closing the short position, the asset must be bought back and returned to the asset lender. Financial analysts use the words “bull/bullish” and “bear/bearish” for describing the rising trend and falling trend of the price of the assets. The term arbitrage used in finance refers to the transactions leading to a risk-free profit.
Example 1.2 If a trader observes three foreign exchange prices USD/JPY $=113.65$ (i.e. $113.65$ Yen per US dollar), EUR/USD $=1.0922$, EUR/JPY $=124.23$, he can make a risk-free profit of about $0.10$ JPY per EUR by the following transactions ${ }^2$ :

• sell EUR/buy JPY at 124.23, and simultaneously,
• buy EUR/sell USD at $1.0922$ and buy USD/sell JPY at $113.65$.
The most important risks for the financial products include
Market Risk: it is the risk on the return or mark-to-market (MtM) price of the product caused by the changes of the market price of the related financial assets and other financial factors;
Counterparty Risk: it arises when one of the parties fails to fulfill obligation towards the other party;
Liquidity Risk: the uncertainty about the terms and ability to make, unwind or hedge a transaction.

## 数学代写|金融衍生品代写金融衍生品代考|投资回报与风险

.

$R=\frac{P_t-P_s}{P_s} \quad$或$\quad R=\frac{P_t}{P_s}-1, \quad$，其中$P_t$是资产在时间$t$ 的价格

$P_t=P_s(1+r)^\tau$，其中$\tau$表示周期$[s, t]$的年数。

• 在124.23卖出欧元/买入日元，同时，
• 在$1.0922$买入欧元/卖出美元，在$113.65$买入美元/卖出日元。
金融产品最重要的风险包括
市场风险:是由相关金融资产的市场价格和其他金融因素的变化引起的产品的收益或按市值计价(MtM)价格的风险;
交易对手风险:
流动性风险:关于交易条款和进行、解除或对冲交易能力的不确定性。

## 有限元方法代写

tatistics-lab作为专业的留学生服务机构，多年来已为美国、英国、加拿大、澳洲等留学热门地的学生提供专业的学术服务，包括但不限于Essay代写，Assignment代写，Dissertation代写，Report代写，小组作业代写，Proposal代写，Paper代写，Presentation代写，计算机作业代写，论文修改和润色，网课代做，exam代考等等。写作范围涵盖高中，本科，研究生等海外留学全阶段，辐射金融，经济学，会计学，审计学，管理学等全球99%专业科目。写作团队既有专业英语母语作者，也有海外名校硕博留学生，每位写作老师都拥有过硬的语言能力，专业的学科背景和学术写作经验。我们承诺100%原创，100%专业，100%准时，100%满意。

## MATLAB代写

MATLAB 是一种用于技术计算的高性能语言。它将计算、可视化和编程集成在一个易于使用的环境中，其中问题和解决方案以熟悉的数学符号表示。典型用途包括：数学和计算算法开发建模、仿真和原型制作数据分析、探索和可视化科学和工程图形应用程序开发，包括图形用户界面构建MATLAB 是一个交互式系统，其基本数据元素是一个不需要维度的数组。这使您可以解决许多技术计算问题，尤其是那些具有矩阵和向量公式的问题，而只需用 C 或 Fortran 等标量非交互式语言编写程序所需的时间的一小部分。MATLAB 名称代表矩阵实验室。MATLAB 最初的编写目的是提供对由 LINPACK 和 EISPACK 项目开发的矩阵软件的轻松访问，这两个项目共同代表了矩阵计算软件的最新技术。MATLAB 经过多年的发展，得到了许多用户的投入。在大学环境中，它是数学、工程和科学入门和高级课程的标准教学工具。在工业领域，MATLAB 是高效研究、开发和分析的首选工具。MATLAB 具有一系列称为工具箱的特定于应用程序的解决方案。对于大多数 MATLAB 用户来说非常重要，工具箱允许您学习应用专业技术。工具箱是 MATLAB 函数（M 文件）的综合集合，可扩展 MATLAB 环境以解决特定类别的问题。可用工具箱的领域包括信号处理、控制系统、神经网络、模糊逻辑、小波、仿真等。