The accumulator as a toxic option strategy : Poland case
Other Title(s)
المراكم بوصفه خيار استراتيجي سام : حالة بولندا
Author
Source
Jordan Journal of Economic Sciences
Issue
Vol. 2, Issue 1 (30 Jun. 2015), pp.87-95, 9 p.
Publisher
University of Jordan Deanship of Academic Research (DAR)
Publication Date
2015-06-30
Country of Publication
Jordan
No. of Pages
9
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
The paper is on toxic foreign exchange options problem which occurred in many emerging markets directly prior to - and just after the outbreak of the recent crisis.
The article concentrates exclusively on so called accumulators.
These portfolios of exotic options were nicknamed “I will kill you later” in the Southern Asia countries.
However, they were offered also in Poland by local banks to their customers.
Similarly to Asian countries, accumulators contributed to significant losses for the banks’ clients.
The paper explains a mechanism of the contract as well as presents the explanatory case study of an authentic transaction.
Because of accumulators’ complexity, banks succeeded in selling these unfair transactions thus, making profits.
The correct pricing procedure reveals the unfairness of these options, as it is demonstrated in the article.
American Psychological Association (APA)
Liberadzki, Kamil. 2015. The accumulator as a toxic option strategy : Poland case. Jordan Journal of Economic Sciences،Vol. 2, no. 1, pp.87-95.
https://search.emarefa.net/detail/BIM-817205
Modern Language Association (MLA)
Liberadzki, Kamil. The accumulator as a toxic option strategy : Poland case. Jordan Journal of Economic Sciences Vol. 2, no. 1 (2015), pp.87-95.
https://search.emarefa.net/detail/BIM-817205
American Medical Association (AMA)
Liberadzki, Kamil. The accumulator as a toxic option strategy : Poland case. Jordan Journal of Economic Sciences. 2015. Vol. 2, no. 1, pp.87-95.
https://search.emarefa.net/detail/BIM-817205
Data Type
Journal Articles
Language
English
Notes
Record ID
BIM-817205