II. What Are Credit Derivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
market, we, 美ME+ also is looking to expand our business.
This report is divided into two parts, the first half; we will talk about the Japanese market as a whole cultural risk, country risk, and currency risk. And in the later half; we will analysis the cosmetics market in Japan, and describe our company’s market strategy. After that, we will predict future prospects of our company.
Reaserch Question
Business suspension of savings bank
In February, 2011, several savings banks were ordered to suspend business inKorea. The reason is that the bank was weakened by overusing project financing technique which resulted in high default rate and delay of cash flow. Suspension of business of savings bank cause the innocent depositor to cry in front of the closed bank. That was
credit card information
US 2005 : Anti-phishing Act of 2005 – although not implemented, under this law those who created fake web sites and sent bogus e-mails in order to defraud consumers would be subject to fines of up to US$250,000 and prison terms of up to five years.
UK : Fraud Act 2006 - general offence of fraud that can carry up to a ten year prison sentence, and prohibits the deve
lambda: (1)source of revenues (2)manufacturing facilities (3)use of risk management products. We choose to use the first one; source of revenue.
Samsung SDI is a Korea company but we use risk free rate and risk premium as US T-bond, so we must adjust cost of equity by using country risk premium.
⑤ Three ways about estimating Ke
(1)Ke = Rf + β*MRP + CRP
(2)Ke = Rf + β*(MRP + CRP)