📚 node [[financial risk management solution costs standardisation and time|standardisation and time]]
Welcome! Nobody has contributed anything to 'financial risk management solution costs standardisation and time|standardisation and time' yet. You can:
-
Write something in the document below!
- There is at least one public document in every node in the Agora. Whatever you write in it will be integrated and made available for the next visitor to read and edit.
- Write to the Agora from social media.
-
Sign up as a full Agora user.
- As a full user you will be able to contribute your personal notes and resources directly to this knowledge commons. Some setup required :)
⥅ node [[financial-risk-management-solution-costs-standardisation-and-time]] pulled by Agora
📓
garden/KGBicheno/Economics/Financial risk management solution costs - Standardisation and time.md by @KGBicheno
Financial risk management solution costs - Standardisation and time
Go back to the [[Risk Management Main Page]]
Four critical factors impact the price of risk management solutions.
- Stardardisation
- Time
- Liquidity
- Market Volatitlity
For the second half see [[Liquidity and Volatility]]
Most commonly hedged prices are:
- interest rates
- currency rates
- commodity rates
The the prices of the instruments for hedging them:
- Options
- Swaps
- Futures
- Forwards
Are dependent on theL
- How standard the markets are
- How long you need that instrument in place
- How liquid those markets are
- How volatile those markets are
Standardisation
How common the requirements for risk management are
Basis Risk
- Product
- Timing
- Geography
Time
The time until risk management contracts expire. Cheaper the the closer to expiration.
📖 stoas
⥱ context
↑ pushing here
(none)
(none)
↓ pulling this
(none)
(none)
→ forward
(none)
(none)
🔎 full text search for 'financial risk management solution costs standardisation and time|standardisation and time'