LTCM (in french)
Septembre 1998, le monde découvre qu’il est passé à côté de l’explosion d’une bombe financière nommée LTCM. Ce “hedge fund” a failli entraîner dans sa chute le monde de la finance. Seul un plan de sauvetage de 3,7 milliards de dollars a pu limiter les dégâts.
UN DEMI-DIEU DE LA FINANCE COMME PDG
LTCM, ou Long Term […]
Bond prices vs interest rates?
Why do interest rates tend to have an inverse relationship with bond prices?
At first glance, the inverse relationship between interest rates and bond prices seems somewhat illogical, but upon closer examination, it makes sense. An easy way to grasp why bond prices move opposite to interest rates is to consider zero-coupon bonds, which don’t paycoupons but […]
Common trading terms
American Stock Exchange (AMEX) - Second largest stock exchange in the US.
AMEX Market Value Index - Measurement of all stocks on the American Stock Exchange.
Asking price - The price an investor pays to purchase stock.
At-the-money option - when the strike price of an option is the same as the current market price of the underlying […]
Options & Futures
Besides the primary financial assets discussed in previous posts (stocks, commodities, exchange rate), many other financial instruments, such as options and futures contracts, are traded on organized markets (exchanges). These securities are generically called derivatives, because they derive their value from the price of some primary underlying asset. The most basic derivatives are options. An […]