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NHOM 4 TIENG ANH TAI CHINH NGAN HANG 2

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A anticipates future changes in a market and makes risky transactions, hoping to make a gain.. A anticipates future changes in a market and makes risky transactions, hoping to make a gai

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BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC NGÂN HÀNG

UNIT 19: DERIVATIVES

GVHD: Phan Thị Lệ Hoa

Nhóm 4:

1 Phùng Như Hạnh

2 Nguyễn Hà Trúc Phương

3 Mai Trung Hưng

Trang 2

• Exercise 1

• Exercise 2 Reading 1

• Exercise 1

• Exercise 2 Reading 2

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EXERCISE 1

1 A is a contract giving the possibility to sell a specified quantity securities, foreign exchange or commodities in the future,

if it is advantageous to do so (para 3, line 3)

1 A is a contract giving the possibility to sell a specified quantity securities, foreign exchange or commodities in the future,

if it is advantageous to do so (para 3, line 3)

2 are raw materials such as agricultural products and

metals that traded on special exchanges (para 2, line 2)

2 are raw materials such as agricultural products and metals that traded on special exchanges (para 2, line 2)

3 are forward contracts for the purchase and sale of

securities, precious metals, etc at a fixed price (para 2, line 1)

3 are forward contracts for the purchase and sale of

securities, precious metals, etc at a fixed price (para 2, line 1)

4 A is a contract giving the buyer the right, but not the

obligation, to buy an asset in the future (para 3, line 2)

4 A is a contract giving the buyer the right, but not the obligation, to buy an asset in the future (para 3, line 2)

Find words and phrases in the text to complete the sentences.

put option

Commodities

Futures

call option

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EXERCISE 1

6 An is an exchange of future payments on borrowed

money according to specified terms (para 2, line 7)

6 An is an exchange of future payments on borrowed money according to specified terms (para 2, line 7)

8 A anticipates future changes in a market and makes

risky transactions, hoping to make a gain (para 3, line 10)

8 A anticipates future changes in a market and makes risky transactions, hoping to make a gain (para 3, line 10)

9 A is the money the writer of an option receives

(para 3, line 7)

9 A is the money the writer of an option receives

(para 3, line 7)

7 lf you an option you use or implement the option,

taking up the possibility to buy or sell something (para 3, line 6)

7 lf you an option you use or implement the option, taking up the possibility to buy or sell something (para 3, line 6)

5 If you you make transactions that are designed to

reduce risk regarding a particular price, interest rate or exchange

rate (para 3, line 11)

5 If you you make transactions that are designed to

reduce risk regarding a particular price, interest rate or exchange rate (para 3, line 11)

hedge

interest rate

exericise

speculator

premium

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EXERCISE 2

Use a word or phrase from each box to make word combinations from the text You can use some words more than once Then use some of the word combinations to complete the sentences below

1 Companies with fixed and floating loans can choose to

2 Futures contracts allow you to short-term

3 Hedging is the attempt to ;speculating is the opposite.

4 If prices move the wrong way the buyers of do not them

5 With futures, you can several months in

advance

5 With futures, you can several months in

advance

swap interest payments

eliminat e

risks

reduce risks/ uncertaintly

options exercises

determine/ guarantee prices

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READING 2 – An Investment ‘time bomb

NEWS

Buffett warns on investment 'time bomb'

1 investment

2 clients

3 risk

4 instruments

NEWS

Buffett warns on investment 'time bomb'

1 investment

2 clients

3 risk

4 instruments

Contracts devised by ‘madmen’

5 speculate

6 commodities

7 underlying

8 hedge

9 contracts

Contracts devised by ‘madmen’

5 speculate

6 commodities

7 underlying

8 hedge

9 contracts

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BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC NGÂN HÀNG

UNIT 21: ASSET MANAGEMENT

GVHD: Phan Thị Lệ Hoa

Nhóm 4:

1 Phùng Như Hạnh

2 Nguyễn Hà Trúc Phương

3 Mai Trung Hưng

Trang 9

1 Why are people getting angry with active money managers?

Because they are not performing better than passive managers, who

simply invest in indexed funds

Because they are not performing better than passive managers, who

simply invest in indexed funds

2 Why did indexed funds develop?

2 Why did indexed funds develop?

Because people argued that it was impossible to consistently do better

than the markets (and they wanted to take advantage of the bull markets in the 80s and 90s)

Because people argued that it was impossible to consistently do better

than the markets (and they wanted to take advantage of the bull markets in the 80s and 90s)

3 What is the efficient market hypothesis?

3 What is the efficient market hypothesis?

The efficient – market hypothesis is that a company’s share price always accurately reflects all available useful information Further analysis will not reveal any additional information, so there is no way of knowing more than the rest of the market participants

The efficient – market hypothesis is that a company’s share price always accurately reflects all available useful information Further analysis will not reveal any additional information, so there is no way of knowing more than the rest of the market participants

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4 What is George Soros’s argument against the efficient-market hypothesis?

4 What is George Soros’s argument against the efficient-market hypothesis?

George Soros argues that markets often over – or undervalue things, and that high and low share prices can make things happen which in turn have

an effect on prices

George Soros argues that markets often over – or undervalue things, and that high and low share prices can make things happen which in turn have

an effect on prices

5 How did Peter Lynch beat the market?

5 How did Peter Lynch beat the market?

Peter Lynch found good companies that the market was undervaluing

6 Why does the article recommend that the average investor should use a passive index linked fund rather than an actively managed one?

6 Why does the article recommend that the average investor should use a passive index linked fund rather than an actively managed one?

Because most active managers do worse than the market average, and

unlike passive managers they also charge fees

Because most active managers do worse than the market average, and

unlike passive managers they also charge fees

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2 DIPLOMTIC LANGUAGE

Match the direct statements (1-6) with the more diplomatic phrase (a-f)

1 – d That's a bad idea! Don't you think it would might be a good idea to ?

2 – a Completely disagree with you! I'm not entirely sure about that

3 – f You can't just transfer all your funds! Maybe it would be better to just transfer some of your funds?

4 – c That's illogical! I'm afraid don't think that's very logical

5 – b That'll make things worse!

I'm not sure that that would make things any better

6 - e You shouldn't do that! Perhaps you should consider a different investment strategy?

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BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC NGÂN HÀNG

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