OIS is a hedging contract exchanging predetermined cash flows based on price indices. Uses overnight rate index like federal funds rate as floating leg. Terms can range from three months to over a year
Delta measures the price change of a derivative for every $1 change in underlying security. Delta values range from -1 to 0 for puts and 0 to 1 for calls. Delta is calculated in real time by computer algorithms
Financial market facilitates trading of securities and derivatives at low costs. Markets can be physical (stock exchanges) or electronic (NASDAQ). Primary markets deal with new securities, secondary markets with existing ones
Silver has been used as money for over 4,000 years. Global silver reserves reached 530,000 tonnes in 2011. Main demand for silver was industrial applications (40%) in 2009
Derivatives market trades financial instruments derived from other assets. Market divided into exchange-traded and over-the-counter derivatives. European derivatives market has €660 trillion notional amount
Delta measures derivative price sensitivity to underlying asset value. Calculated as ratio of derivative value change to underlying price change. Delta ranges from 0 to 1 for call options, 0 to -1 for put options