Arbitrage
Global Trading
FINC 6015
Arbitrage
Source: Frino Segara (2008) Chapter 3 – Course Text
Joakim Westerholm
Hui Zheng
MARKET COMMENTARY
MACRO: Any economic indicators that show the US economy is improving are now perceived as negative news for stock markets as this means the FED can wind back on flooding the market with liquidity created by buying back government bonds. POLITICAL: Syria
Australian Reserve bank appears at ease with the weaker dollar and will continue to ease rates:
Political situation in Australia open but a clear winner is emerging? AUD moves lower USD moves higher, weak Asian currencies, Yen, Indian Rupee catastrophically weak and Indonesian Rupia also under pressure (rate hike).
Investors needed a reason to take profits :
– US FED to taper back their bond purchases – Syria, – October typically a volatile month nearing... – Better economy improve company profits in the long run!
Mid Semester Exam 25% of Final Grade – One Opportunity Only!
› 13 September (Friday) starts at 4pm › Hence no lectures next week, use the time to go through the material from weeks 1 to 5 inclusive: Textbook Chapters, Lecture Notes, and Workshop Questions. › Carslaw Lecture Theatres 158 and 159 › 40 Multiple choice questions; 90 minutes in total › An announcement will be made prior to the exam on Blackboard about seat allocation. (Which of the two theatres you should go to) › You should bring your student ID, pencil, rubber, calculator (check battery!) with you. Nothing else! › If you bring a bag or book they are to be left in front of the class › Do NOT attempt to bring cheat sheets or similar prohibited material, if you are caught you will immediately fail this exam. › Hand back both the answer sheet AND the question sheet, failure to do so will also result in a fail for the mid-semester exam.
› Example multiple choice questions at the end of these lecture notes…
Objectives of this Lecture
Chapter 3: Arbitrage
› Introduce equity
FINC 6015
Arbitrage
Source: Frino Segara (2008) Chapter 3 – Course Text
Joakim Westerholm
Hui Zheng
MARKET COMMENTARY
MACRO: Any economic indicators that show the US economy is improving are now perceived as negative news for stock markets as this means the FED can wind back on flooding the market with liquidity created by buying back government bonds. POLITICAL: Syria
Australian Reserve bank appears at ease with the weaker dollar and will continue to ease rates:
Political situation in Australia open but a clear winner is emerging? AUD moves lower USD moves higher, weak Asian currencies, Yen, Indian Rupee catastrophically weak and Indonesian Rupia also under pressure (rate hike).
Investors needed a reason to take profits :
– US FED to taper back their bond purchases – Syria, – October typically a volatile month nearing... – Better economy improve company profits in the long run!
Mid Semester Exam 25% of Final Grade – One Opportunity Only!
› 13 September (Friday) starts at 4pm › Hence no lectures next week, use the time to go through the material from weeks 1 to 5 inclusive: Textbook Chapters, Lecture Notes, and Workshop Questions. › Carslaw Lecture Theatres 158 and 159 › 40 Multiple choice questions; 90 minutes in total › An announcement will be made prior to the exam on Blackboard about seat allocation. (Which of the two theatres you should go to) › You should bring your student ID, pencil, rubber, calculator (check battery!) with you. Nothing else! › If you bring a bag or book they are to be left in front of the class › Do NOT attempt to bring cheat sheets or similar prohibited material, if you are caught you will immediately fail this exam. › Hand back both the answer sheet AND the question sheet, failure to do so will also result in a fail for the mid-semester exam.
› Example multiple choice questions at the end of these lecture notes…
Objectives of this Lecture
Chapter 3: Arbitrage
› Introduce equity