v4 2017前導(dǎo)frm金融英語(yǔ)

PAGE2AAFrameworkforLanguage&Financial

SentencesHowtoDecodeaTerminologyWithoutTranslationHowtoParseaLongandSophisticatedSentenceFinancialPAGEPAGE5 PAGE61.主語(yǔ)從句（SubjectThathefinishedwritingthecompositioninsuchashorttimesurprisedusall.WhetherwewillgoforanoutingtomorrowremainsWhowillbeourmonitorhasn'tbeendecidedWhatcausedtheaccidentremains2.表語(yǔ)從句（PredicativeHissuggestionisthatweshouldstayThequestioniswhenhecanarriveattheHehasbecomewhathewantedtobetenyears3.賓語(yǔ)從句（ObjectIheardthathewouldcomeherelaterHeiswonderingwhenhecanfinishthisdifficultIthoughtitimpossiblethathecouldfinishthisjobinjusttwoIcan’tdecidewhethertoIdon’tthinkhelikestheEnglish4.同位語(yǔ)從句（AppositiveIheardthenewsthatourteamhadI’vecomefromMrWangwithamessagethathewon’tbeabletoseeyouthisafternoon． comingtoinspectthem.ThethoughtcametohimthatmaybetheenemyhadfledthePAGE10Theprosperitythathadneverappearedbeforetookoninthe Thosewhoareinfavoroftheproposalareexpectedtodiscussitindetailafterthemeeting.Airmovesfromplaceswherethepressurewashightoplaceswherethepressureislow.Theyturnedablindeyetothesufferingofthepeople,whichenragedallofus.ThedriveristhemanfromwhoseroomshehadstolenthegoldTheboywasrunoverbyamotor-car,asoftenhappenedinpre-liberationShanghai.Heisneedingabook,thenameofwhichIdon'tPAGE12Theideathatcomputerscanrecognizehumanvoicessurprisesmanypeople.TheideathathegavesurprisesmanyThenewsthathehasbeenadmittedbyHarvardUniversityisverypleasing.ThenewsthatyoutoldmewasreallyPAGE131.時(shí)間狀語(yǔ)從句（adverbialclauseof WhenIgottotheairport,IsuddenlyrememberedthatIhadlefttheticketbehind.NosoonerhadIopenedthedoorthanthetelephone2.地點(diǎn)狀語(yǔ)從句（adverbialclauseofIwillstandwhereIcanseetheparadeWherevertheywent,theywerewarmly(adverbialclauseofIwillnotgotoherpartyifshedoesn’tinvite=IwillnotgotoherpartyunlesssheinvitesIcantellyouthetruthonconditionthatyoupromisetokeepaHewon'tbeagainstusinthemeetingprovidedthatweaskforhisadviceinadvance.(adverbialclauseofAstheschoolregulationsarewrittenquiteclearly,thereisnothingmoretobeexplained.Consideringthatthesweaterwashandmade,itwasnotSeeingthattheyareinexperienced,theyaredoingquiteagood5.（adverbialclauseofIcheckedalltheresultstimeandagainforfearthatthereshouldbeanymistakes.Telephoneusinadvanceinorderthatwemightmakethenecessaryarrangements.6.讓步狀語(yǔ)從句（adverbialclauseofHewillnotgiveupsmokingeventhoughthedoctoradviseshimIthasbeenthesameresult,whicheverwayyoudoWhetheryoubeastudentorateacher,youarerequiredtoobeytheregulationsoftheschool.7.比較狀語(yǔ)從句（adverbialclauseofThehistoryofnursingisasoldasthehistoryofShelooksmuchyoungerthansheJackisnotmorefrightenedthanMike8.方式狀語(yǔ)從句（adverbialclauseofAswateristofish,soairistoTheycompletelyignorethesefactsasiftheynever9.結(jié)果狀語(yǔ)從句（adverbialclauseofHeissohumorousthatwe’llneverforgetSheissuchanicegirlthateverybodylikestomakefriendswithPAGE22ThepatientaskedtobeoperatedonatIt'snicetomeetTheboypretendedtobeworkingHeispleasedtohavemethisTofinishtheworkintenminutesisvery=ItisveryhardtofinishtheworkintenHerjobistocleantheMarxfounditimportanttostudythesituationinIsawhim(to)crossthe=HewasseentocrosstheIhaveameetingtoWehavemadeaplantofinishtheHeworkeddayandnighttogetthemoney.（表目的Ivisitedhimonlytofindhimout.（表結(jié)果PAGE25SeeingisHecametothepartywithoutbeingWerememberedhavingseentheHeforgothavingbeentakentoGuangzhouwhenhewasfiveyearsold.IregretnotfollowinghisReadingaloudisveryIntheantcity,thequeen'sjobislayingTheyhaven'tfinishedbuildingtheaswimmingPAGE27Theywenttothepark,singingandTheproblembeingdiscussedisveryThepresentsituationisThemanspeakingtotheteacherisourmonitor's=ThemanwhoisspeakingtotheAdeveloping(While)Workinginthefactory,hewasanadvanced(As)BeingaLeaguemember,heisalwayshelping(If)Playingallday,youwillwasteyourvaluableHedroppedtheglass,(asaresult)breakingitintoWiththelightsburning,hefell PAGE30ThewindowisOurclasswentonanorganizedtriplastAdeveloped(As)Praisedbytheneighbours,hebecametheprideofhisOnceseen,itcanneverbe(If)Givenmoretime,I'llbeabletodoitThoughtoldofthedanger,hestillriskedhislifetosavethePAGESentencesSentencesFinancialSampleSamplePAGE32Atleast100,000demonstratorschanting"UkraineisEurope"marchedthroughthenation'scapitalKievtoshowangeroverPresidentViktorYanukovych'srefusaltosignanagreementtowardclosereconomicandpoliticalcooperationwiththeEU.SampleSamplePAGE33 Along-heldviewofthehistoryofEnglishcoloniesthatbecametheUnitedStateshasbeenthatEngland’spolicytowardthesecoloniesbefore1763wasdictatedbycommercialinterestsandthatachangetoamoreimperialpolicy,dominatedbyexpansionistmilitaristobjectives,generatedthetensionsthatultimatelyledtotheAmericanRevolution.SampleSamplePAGE34 Becausethepotentialhazardspollengrainsaresubjecttoastheyaretransportedoverlongdistancesareenormous,windpollinatedplantshave,intheviewabove,compensatedfortheensuinglossofpollenthroughhappenstancebyvirtueofproducinganamountofpollenthatisonetothreeordersofmagnitudegreaterthantheamountproducedbyspeciespollinatedbyinsects.SampleSamplePAGE35 "Contractofcarriage"appliesonlytocontractsofcarriagecoveredbyabillofladingoranysimilardocumentoftitle,insofarassuchdocumentrelatestothecarriageofgoodsbysea,includinganybillofladingoranysimilardocumentasaforesaidissuedunderorpursuanttoacharterpartyfromthemomentatwhichsuchbillofladingorsimilardocumentoftitleregulatestherelationsbetweenacarrierandaholderofthesame.PAGEHowtoDecodeaHowtoDecodeaAnAnexcerptfrom“Fixed-PAGE37Thefeaturesofafixed-incomesecurityincludespecificationTheissueroftheThematuritydateoftheTheparCouponrateandCurrencyinwhichpaymentswillbeIssuersofThereareseveraltypesofentitiesthatissuebondswhentheyborrowmoney,including:Corporations,Sovereignnationalgovernments,Nonsovereign…Quasi-governmententities.Notadirectobligationofacountry’sgovernmentorcentralbank.AnexampleistheFederalNationalMortgageAssociation(FannieMae)…Supranationalentities.IssuedbyorganizationsthatoperategloballysuchastheWorldBank,theEuropeanInvestmentBank,andtheInternationalMonetaryFund(IMF).BondThematuritydateofabondisthedateonwhichtheprincipalistoberepaid.Onceabondhasbeenissued,thetimeremaininguntilmaturityisreferredtoasthetermtomaturityortenorofaPar Theparvalueofabondistheprincipalamountthatwillberepaidatmaturity.Theparvalueisalsoreferredtoasthefacevalue,maturityvalue,redemptionvalue,orprincipalvalueofabond.Bondscanhaveaparvalueofanyamount,andtheirpricesarequotedasapercentageofpar.Abondwithaparvalueof$1,000quotedat98issellingfor$980.CouponThecouponrateonabondistheannualpercentageofitsparvaluethatwillbepaidtobondholders.Somebondsmakecouponinterestpaymentsannually,whileothersmakesemiannual,quarterly,ormonthlypayments.A$1,000parvaluesemiannual-paybondwitha5%couponwouldpay2.5%of$1,000,or$25,everysixmonths.Abondwithafixedcouponrateiscalledplainvanillabondoraconventionalbond.Somebondspaynointerestpriortomaturityandarecalledzero-couponbondsorpurediscountbonds.Purediscountreferstothefactthatthesebondsaresoldatadiscounttotheirparvalueandtheinterestisallpaidatmaturitywhenbondholdersreceivetheparvalue.A10-year,$1,000,zero-couponbondyielding7%wouldsellatabout$500initiallyandpay$1,000atmaturity.Wediscussvariousothercouponstructureslaterinthistopicreview.CCCCCCCCPricePrice=0 1 2 3 4 5012345termtomaturity=AnAnexcerptfromPAGE44 Anoptioncontractgivesitsownertheright,butnotthelegalobligation,toconductatransactioninvolvinganunderlyingassetatapredeterminedfuturedate(theexercisedate)andatapredeterminedprice(theexercisepriceorstrikeprice).Optionsgivetheoptionbuyertherighttodecidewhetherornotthetradewilleventuallytakeplace.Theselleroftheoptionhastheobligationtoperformifthebuyerexercisestheoption.Theownerofacalloptionhastherighttopurchasetheunderlyingassetataspecificpriceforaspecifiedtimeperiod.Theownerofaputoptionhastherighttoselltheunderlyingassetataspecificpriceforaspecifiedtimeperiod.Foreveryownerofanoption,theremustbeaseller.Theselleroftheoptionisalsocalledtheoptionwriter.Therearefourpossibleoptionspositions:Longcall:thebuyerofacalloption-hastherighttobuyanunderlyingasset.Shortcall:thewriter(seller)ofacalloption-hastheobligationtoselltheunderlyingasset.Longput:thebuyerofaputoption-hastherighttoselltheunderlyingasset.Shortput:thewriter(seller)ofaputoption-hastheobligationtobuytheunderlyingasset.Toacquiretheserights,ownersofoptionsmustbuythembypayingapricecalledtheoptionpremiumtotheselleroftheoption.BuyeroftheoptionRighttobuyassetPaythepremiumBuyeroftheoptionRighttosellassetPaythepremiumSelleroftheoptionObligationtosellassetReceivethepremiumSelleroftheoptionObligationtobuyassetReceivethepremiumPAGEHowHowtoParseaLongand20142014PAGE50 TheriskandauditcommitteeoftheboardofXYZBankhashiredanoutsideconsultanttoreviewoperationsatthefirm.Severalyearsago,XYZsetupanewarbitragetradingdepartmenttoexplorestatisticalarbitragetradingstrategiesthatwerenewtothefirmatthetime.Aprominentandexperiencedalgorithmictraderwashiredtoheadthedepartment,andthedepartmenthassucceededingeneratingsteadyprofitseachyearsinceitsinception.Recently,thearbitragetradingdepartmenthasbeguntoexpandintohighfrequencytrading(HFT). Whileconductinginterviewswithkeyemployees,theconsultantlearnsthattheCROisconcernedthatthearbitragetradingdepartmentoperateswithmoreautonomythanotherareasofthefirm.Theconsultantalsofindsthattradinglimitsarenotappliedtoarbitragetradingactivitiesthroughstandardinformationtechnology(IT)controlmeasures. Whenquestioned,theheadofarbitragetradingexplainedthatthelackofIT-basedtradinglimitsisnecessarysincetheexistingriskcontrolsarenotflexibleenoughtohandlethevolume,spread,andcomplexityofthedepartment’stradingstrategies.Instead,adetailedlimitreportispreparedforthetradingdeskdaily.Thisreportisreviewedeachdaywiththeheadtraderandrevisedasneeded.Furthermore,theheadofarbitragetradingdisagreeswiththeCRO’sclaim,statingthatthedepartmentdoesnotoperateautonomouslybutreportsdirectlytotheCEO,providingtheCEOwithasummaryofthelimitreportinaweeklybriefingpackage.Theconsultant’sfindingsand/orrecommendationsshouldbeThedirectreportingtotheCEObytheheadofarbitragetradingconstitutesadequateriskcontrolandgovernance.Thebankshouldconsiderreducingthearbitragetradingdepartment’sactivitiesuntilsystemsandcontrolprocessesareTomanagetherisksoftheHFTactivities,1-day99.9%VaRlimitsshouldbeimplemented.ITshouldreporttotheheadofarbitragetradingtoensureadequatesystemsareimplemented.20152015PAGE54AprofitablederivativestradingdeskatabankdecidesthatitsexistingVaRmodel,whichhasbeenusedbroadlyacrossthefirmforseveralyears,istooconservative.TheexistingVaRmodelusesahistoricalsimulationoverathreeyearlook-backperiod,weightingeachdayequally.AquantitativeanalystinthegroupquicklydevelopsanewVaRmodel,whichusesthedeltanormalapproach.ThenewmodelusesvolatilitiesandcorrelationsestimatedoverthepastfouryearsusingtheRiskmetricsEWMAmethod. Fortestingpurposes,thenewmodelisusedinparallelwiththeexistingmodelforfourweekstoestimatethe1-day95%VaR.Afterfourweeks,thenewVaRmodelhasnoexceedancesdespiteconsistentlyestimatingVaRtobeconsiderablylowerthantheexistingmodel’sestimates.Theanalystarguesthatthelackofexceedancesshowsthatthenewmodelisunbiasedandpressuresthebank’smodelevaluationteamtoagree.Followinganovernightexaminationofthenewmodelbyonejunioranalystinsteadofthecustomaryevaluationthattakesseveralweeksandinvolvesaseniormemberoftheteam,themodelevaluationteamagreestoacceptthenewmodelforusebythedesk.AVaRmodelreplacementroughlysimilartotheonedescribedaboveoccurredatJPMorganChaseforitsSyntheticCreditPortfolio(SCP)in2012.Whichofthefollowingcorrectlydescribestheoutcome?ThenewmodelimmediatelyloweredtheSCP'sVaRbyalargepercentage,enablingtheportfoliotostopbreachingitsrisklimit.Shortlyaftertheimplementationofthenewmodel,JPMorgan'sregulatorinquiredintothereasonsforthemodelchangeandtheconsiderablereductioninitsriskestimate.WiththepreviousVaRmodel.theSCProutinelybreacheditsrisklimits,whichhadsparkeddetailedrenewsoftheSCP.ThenewmodelwasineffectforonlyashorttimeasJPMorganbecamelessconcernedaboutreducingrisk-weightedassets.AnAnexcerptfrompastexamPAGE57InI995,BaringswasforcedtodeclarebankruptcyafterreportingoverUSD1billioninunauthorizedtradinglossesbyasingletrader,NickLeeson.WhichofthefollowingstatementsconcerningthecollapseofBaringsiscorrect?Theeffectivenessofthefirm’sriskoversightwasimprovedbyallowingoneindividualtoservebothastheheadoftradingaswellasofthedivision'sbackoffice.MostofLeeson’stradeswereover-the-countertradesonlong-termfuturescontracts,whichallowedBaringstodelaycashpaymentsonlosingtradesuntilthecontractsmatured.Initialstreamsoflargeprofitswerenotinvestigatedbymanagementdespitethefactthattheywereassociatedwithalow-risktradingstrategy.ThelossatBaringswasdetectedwhenseveralcustomerscomplainedoflossesontradesthatwerebookedtotheiraccounts.Anorganizationcangainanadvantageovercompetingfirmsbyadoptingprudentriskmanagementpractices.Oneexampleofthiswouldbe:Eliminating,asmuchaspossible,qualitativemethodsforassessingrisksinfavorofquantitativemethods.Compensatingrisk-takingemployeesprimarilywithstockoptiongrantsinordertobetteraligntheirinterestswiththoseofthefirm.Encouragingtheindependentoperationandoversightofrisk-takingfunctionswithinthefirmtogainthe“benefitsofPreservingdebtcapacitybyissuinglessdebtthanthefirmcanLIBORshouldbefullyunderstoodbeforeusingitasareferencerateforriskmanagementcalculations.WhichofthefollowingstatementsregardingLIBORiscorrect?LIBORisquotedinGBP,EUR,USD,andothermajorLIBORismorerepresentativeofarisk-freeratethantheOIS(overnightindexedswap).LIBORisavailableformaturitiesofupto5LIBORisfreeofcreditrisksinceinterbankdepositsarefullyinsuredbytheUKgovernment.Abuffalofarmerisconcernedthatthepricehecangetforhisbuffaloherdwillbelessthanhehasforecasted.Toprotecthimselffrompricedeclinesintheherd,thefarmerhasdecidedtohedgewithlivecattlefutures.Specifically,hehasenteredintotheappropriatenumberofcattlefuturepositionforSeptemberdeliverythathebelieveswillhelpoffsetanybuffalopricedeclinesduringthewinterslaughterseason.Theappropriatepositionandthelikelysourcesofbasisriskinthehedgeare,respectively:Short;choiceoffuturesdeliveryShort;choiceoffuturesShort;choiceoffuturesdeliverydateandLong;choiceoffuturesdeliverydateandWhichofthefollowingstatementsaboutstresstestingareStresstestingcancomplementVARestimationinhelpingriskmanagersidentifycrucialvulnerabilitiesinaportfolio.StresstestingallowsuserstoincludescenariosthatdidnotoccurinthelookbackhorizonoftheVARdatabutarenonethelesspossible.AdrawbackofstresstestingisthatitishighlyTheinclusionofalargenumberofscenarioshelpsmanagementbetterunderstandtheriskexposureofaportfolio.Whichofthefollowingstatementsiscorrectwhenevaluatingthecountryandsovereignriskofaninternationalbondportfolio? evaluatinghome-currencydenominateddebt. generallypubliclyavailableanduptodate.Democraticcountrieswillhavealmostnopoliticalriskduetotheaccountabilityoftheirpoliticalsystems.Whencomparedtocorporatedefaults,sovereigndefaultsarerelativelyeasytomodelusingparametricmethods.PAGEHowtoHackaChapterHowtoHackaChapterHavingPaperPAGETerms!Terms!PAGEFinancialFinancialPAGE66 FixedForwardandAsset1.1.PAGE67AnalysisFundamentalRisk-freeNominalinterestRealinterestLibor:TheLondonInterbankOfferedEMH(EfficientMarketWeak-formSemi-strong-formStrong-formPlainEmergingCPI:ConsumerPrice2.Fixed2.FixedPAGE71BasicBulletZero-couponPerpetualCallableEarlyPuttableConvertibleCleanDirtyOn-the-RunOff-the-RunYTM:YieldToSpotYiel