金融英语 Chapter4

Source: 恒星英语学习网  Onion  2009-07-30  我要投稿   论坛   Favorite  
[00:00.00]Chapter 4 Futures
[00:02.82]Unit 7  Futures
[00:07.71]Words and Expressions:
[00:11.60]T-bond, bond,appreciate,consequence
[00:19.98]prediction,futures contract
[00:24.37]Dialogue    Stephen and Michael are good friends,
[00:30.46]and they work in the same office building.
[00:34.06]Now they are having lunch together.
[00:36.86]S:How are you getting along with your boss?
[00:41.77]M:Mr.Davis? Fine.He's a kind man.
[00:48.46]You look excited.Any good news?
[00:52.77]S:Yes.Still remember I bought two T-bonds at 79-08 half a month ago?
[01:01.86]M:You mean those two futures contracts?Of course.
[01:06.25]They had been worrying you for a whole week.
[01:10.14]Notes:You mean those two futures contracts?
[01:16.43]Of course.They had been worrying you for a whole week.
[01:20.04]future contract
[02:02.33]S:That week was really terrible.
[02:05.94]The bonds price kept going down and down until it reached the level of 77-30.
[02:14.03]But last week,the price went up and up.
[02:18.95]Yesterday it reached 86-18.
[02:23.23]M:86-18? That is almost 12% more than the level where you bought.
[02:29.94]How much is one T-bond contract?
[02:35.25]S:$100,000 at 70-08.
[02:44.94]From 70-08 to 70-09 is $31.25 up
[02:52.64]and from 70-09 to 70-08 is $31.25 down.
[03:00.95]M:So from 79-08 to 86-18 means that.
[03:08.73]h'm,about $10,000 added,right?
[03:13.83]S:It's actually $14,625.
[03:19.92]M:Oh,great! Have you sold them out?
[03:25.71]S:Yes.I did it yesterday.
[03:28.90]M:At 86-18? S:Exactly.
[03:38.70]In just two weeks, you've made big money.
[03:42.98]How can you manage to do that?
[03:46.38]S:It's just I'm lucky.
[03:50.77]M:It shouldn't be so simple.
[03:55.05]Tell me,why were you so sure the bonds price would go up?
[04:01.03]S:You see,there are many ways to technically analyze the futures market.
[04:08.42]One is to analyze the stock market.
[04:12.71]From the beginning of this year to October,
[04:17.02]the stock market has been in a process of continuous rising of price.
[04:23.21]Because of overbuying,the shares have heavily appreciated.
[04:29.71]This surely will lead to the collapse of the market
[04:35.12]and the end of the two-year rising in the stock market.
[04:39.61]M:What does that mean to the futures market?
[04:45.41]S:One of the consequences is that
[04:49.41]most investors may be afraid
[04:53.22]they can't get back their investment
[04:58.11]and they may shift their money to the bonds.
[05:03.02]The shift will undoubtedly cause the bond price to go up.
[05:09.60]Another consequence is that,
[05:13.50]in order to save the stock market from collapsing
[05:18.38]and to guarantee the financial repaying ability,
[05:22.87]the government will have to
[05:26.45]raise the interest rate and as a result,the bonds price will rise.
[05:33.43]M:It's interesting.
[05:36.30]S:In fact,when I bought the contracts,
[05:40.79]the price was still falling until a week later.
[05:45.50]M:Did you doubt your prediction then?
[05:48.40]S:Yes,a little bit.I thought it over again and I strengthened my judgment.
[05:56.08]M:You finished the contract at 86-18.
[06:01.67]But if the price will go up further?
[06:05.87]S:It is quite possible.You know,it's also possible that it will go down.
[06:13.76]I think it's time for me get in on the action.
[06:18.25]Notes:action    I think it's time for me get in on the action.
[06:37.35]London is great because that's where the action is!
[06:42.34]M:It's really exciting.Maybe I will try it one day.
[06:49.13]Supplementary Reading
[06:51.74]Futures and Futures Market
[06:55.43]Futures market are centralized regulated markets
[07:01.62]where an actual commodity is not physically traded;
[07:06.42]instead futures contracts are bought and sold.
[07:10.81]Futures contracts are legally binding agreements
[07:15.91]Notes:Futures contracts are legally binding agreements
[07:28.81]financial futures contract
[07:33.12]currency futures contract
[07:37.01]interest rate futures contract
[07:40.23]stock index futures contract
[07:44.61]financial forward contract
[07:47.80]and are standardized according to the quality,
[07:52.69]quantity,delivery time and location for each commodity.
[07:58.59]The only variable is price,which is discovered on an exchange-trading floor
[08:04.88]The buyer and seller of a futures contract make their contract not with each other
[08:10.58]but with the clearing house associated with the futures exchange.
[08:16.35]Most market participants prefer to offset futures positions,
[08:21.45]rather than to make actual delivery.
[08:25.44]The function of futures markets are price discovery,
[08:30.43]price risk hedging,and improving market efficiency.
[08:36.05]Futures markets provide a current consensus of knowl edgeable opinions
[08:42.34]about the future price of commodities or financial instrument
[08:47.23]The futures market is used primarily for either risk management or speculation,
[08:54.31]and neither purpose requires delivery.
[08:58.72]Futures prices are quotes for delivering a designated quality and quantity of grain
[09:05.20]to a specified place and time.
[09:09.38]The delivery place is established according to the rules of the futures contract.
[09:15.08]The delivery time consists of certain designated days during the delivery month.
[09:21.76]Options on futures,also traded on the floor of a regulated futures exchange,
[09:28.76]are contracts that convey the buyer the right,but not the obligation,
[09:34.67]to buy or sell a particular futures contract at a certain price for a limited time.
[09:41.17]Only the seller of the option is obligated to perform.
[09:46.27]There are two different types of options:calls and cuts.
[09:51.86]A call is an option that gives the buyer the right,but not the obligation,
[09:57.05]to purchase the underlying futures contract at the strike price
[10:01.84]on or before the expiration date.
[10:05.65]A put is an option that gives the buyer the right,but not the obligation,
[10:11.63]to sell the underlying futures contract at the strike price
[10:16.65]on or before the expiration date.
[10:20.75]Unit 8 Hedging
[10:23.35]第八单元 套期保值
[10:25.95]Words and Expressions:
[10:29.13]hedging,broker,starch consignment,
[10:39.24]anticipatory hedging cash market,
[10:45.15]sell short buy long
[10:51.73]Mr.Landor,a senior executive in a London foreign trade,
[10:57.32]is consulting Mr.Kent,a broker in the London Grain Exchange.
[11:03.22]L:Excuse me,sir.I have come here to meet Mr.Kent.
[11:09.81]K:That's me.Are you Mr.Landor? L:Yes,I am Landor.
[11:16.88]K:Good morning.My secretary told me you would come this morning.
[11:22.40]L:Good morning.I have got something to consult with you.
[11:31.59]L:Our company is going to purchase 50,000 tons of corn from America on August 20th
[11:40.68]and the CIF is 15,000 American dollars per ton.
[11:46.69]40,000 of the consignment have been ordered
[11:51.08]by a feed processing plant and a corn starch plant,
[11:55.76]but we have not yet found a buyer for the rest.
[11:59.93]The problem is that the cargo
[12:03.04]will not arrive here from America until 45 days after the purchasing time.
[12:09.83]And you are afraid that if the corn price drops in 45 days,
[12:17.33]you will suffer a loss in selling the remaining 10,000 tons of corn.
[12:25.25]L:Yes.I heard there is a method of protecting against the risk on the futures market.
[12:33.14]K:Yes.We call it hedging.There are several kinds of hedging
[12:41.73]and anticipatory hedging just suits your situation.
[12:47.11]L:How should I do the hedging?
[12:50.82]K:When you buy the corn on the cash market,
[12:56.20]you can sell short a futures contract of the same amount of corn on the futures market
[13:04.20]in anticipation of the corn price's falling
[13:09.68]L:Is that what is called "taking a position",
[13:14.25]selling a parcel for forward delivery
[13:18.33]but waiting for the price to go down before actual buying.
[13:23.60]K:Yes.The opposite action is called "buying long".
[13:29.01]When 45 days later,on October 1st,if corn price actually goes down,
[13:37.11]say,to 13,000 American dollars per ton,
[13:43.12]you will get a profit of 2,000 American dollars per ton on the futures market.
[13:50.41]This will make up your loss on the cash market.
[13:56.21]In this way you can successfully control your risk in foreign trade.
[14:03.62]L:I see.
[14:07.12]K:Since you have to use American dollars to pay for the corn,
[14:13.32]it is also necessary to do a hedging on foreign currencies.
[14:19.92]L:Thank you very much.
[14:22.51]K:You are welcome.See you later.L:See you.
[14:25.57]不客气,再见. 再见.
[14:28.62]Supplementary Reading   Hedging:How It Works
[14:35.02]The second economic function provided by futures exchanges
[14:40.51]is price risk management,also known as hedging.
[14:46.31]Hedging,in its simplest form,is
[14:49.81]the practice of offsetting the price risk inherent in any cash market position
[14:56.03]by buying or selling futures contracts.
[15:03.92]Hedging,in its simplest form,is the practice of offsetting the price risk
[15:08.90]inherent in any cash market position by buying or selling futures contracts.
[15:23.09]a long position,a short position,
[15:28.10]long position,short position,
[15:33.20]exchange position,interest rate position,
[15:39.10]swap position,square position,outright position
[15:47.91]Hedgers use the futures market to protect their businesses
[15:53.39]from adverse price changes
[15:56.40]that could negatively impact the bottom-line profitability of their business.
[16:02.19]Hedging can benefit anyone including grain elevator operators,
[16:07.50]merchandisers,producers,exporters,or processors
[16:11.99]who produce,handle,or process
[16:17.01]any of the agricultural commodities traded on futures exchanges.
[16:22.28]Hedging is a two-step process.
[16:26.46]Depending upon a hedger's cash market situation,
[16:31.76]the hedger would either buy or sell futures as the first position.
[16:36.86]Parties who have bought a futures contract are said to have taken a long position.
[16:43.55]Parties who have sold a futures contract are said to have taken a short position
[16:51.04]A long position involves inflows greater than outflows in a currency
[16:57.55]and a short position involved outflows greater than inflows.
[17:04.05]Then,at a later date,before the futures hedger would take a second position
[17:09.85]opposite the opening transaction.
[17:13.95]The opening and closing positions of the hedge must be for the same commodity,
[17:19.75]number of contracts,and delivery month.
[17:24.35]In a nutshell,a hedge is placed by taking a futures position
[17:28.74]opposite to the position held in the cash market,
[17:32.92]and exactly equivalent in value.
[17:37.02]Whether establishing a short or a long hedge,
[17:41.02]the main objective is to offset the price risk
[17:45.51]associated with buying,selling,or holding grain.
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