Derivatives

What are Futures

A futures contract is essentially the same as a forward, except that the deal is made through an organized and regulated exchange rather than being negotiated directly between two parties. In a Physically Delivered Contract one side agrees to deliver a commodity or asset on a future date (or within a range of dates) at a fixed price, and the other party agrees to take delivery. In a Cash-Settled Futures Contract the difference between the Read more…

Derivatives

What are Forwards

A forward contract is made directly between two parties. In a physically delivered forward contract one party agrees to buy an underlying commodity or financial asset on a future date at an agreed fixed price. The other party agrees to deliver that item at the stipulated price. Both sides are obliged to go through with the contract, which is a legal and binding commitment, irrespective of the value of the underlying at the point of Read more…

Derivatives

What are Swaps

A swap is an agreement made between two parties to exchange payments on regular future dates, where each payment leg is calculated on a different basis. For example, suppose that a US company has to make interest payments on a euro loan over the next five years. Unfortunately its income is in US dollars, so it is exposed to changes in the exchange rate between the euro and the dollar. The firm can enter into Read more…

Travelogue

Misty Shores Of Skye

When staying in Scotland, a trip to Skye is almost ritualistic. People visit due to various reasons. Some go to see the dreamy vistas, some for a peek into the life in highlands, and some just for the fun of driving on winding mountain roads. I fell somewhere between these categories. Rocky cliffs with castles atop are sight to behold, telling the story of human perseverance. At the same time nature has a way to Read more…

Python

Context Managers In Python

Context managers are inherent feature of python to provide a way to obtain and release resources on demand. When a context manager is used, a definite scope is defined to safely delete or clean resources. For example a file can be read in below two ways. https://gist.github.com/anaved/437ed10fa2c2a4f3252e715aa2f2b006#file-file_read_in_context-py In this method, python interpreter has no way to estimate the need for myFile in future. Hence it holds on to the file descriptor until the program scope. Read more…