High Return Investments

Strike price

In the context of derivatives the strike price of an option is a key
variable in a financial contract between two parties. Typically an option
has positive monetary value if an underlying financial instrument (e.g. a
stock price, interest rate or inflation rate) has a value above (or below
depending on the particular type of contract, but not both) the strike
price.

In the context of a call option, the payoff is (S - K) + where S is the
final of the underlying, K is the strike and where

     [()^+(x)=\{^{x\ if\ x\geq 0}_{0\ otherwise}]

For a put option the corresponding payoff is (K - S) +

For a digital option [1_{S\geq K}] where 1{} is the indicator function.

Investment FreshNews:

G7 announces plan of action for finance crisis (AFP via Yahoo! News)
Fri, 10 Oct 2008 22:59:48 GMT
Group of Seven finance chiefs announced Friday a plan of action to fight a global crisis including the use of "all available tools" to support key institutions and prevent their failure.

GE profit drop as expected, finance unit a drag (Reuters via Yahoo! News)
Fri, 10 Oct 2008 16:25:54 GMT
General Electric Co reported a drop in quarterly profit that matched its recent warning to Wall Street, and the U.S. conglomerate said the global credit crunch and slumping economies would continue to take a toll on its hefty finance arm.

World finance chiefs grasp for solutions in firestorm (AFP via Yahoo! News)
Fri, 10 Oct 2008 15:20:46 GMT
Global finance chiefs gathered in Washington for crisis talks Friday in search of a solution to a growing financial firestorm as panic spread in global markets.

WTO chief calls meeting to discuss crisis impact on trade finance (AFP via Yahoo! News)
Fri, 10 Oct 2008 14:33:49 GMT
The World Trade Organisation chief on Friday invited heads of development and commercial banks to a meeting in Geneva next month to discuss the impact of the economic crisis on trade finance.

Trade finance booms amid global crisis (Washington Post)
Fri, 10 Oct 2008 12:37:02 GMT
GENEVA (Reuters) - Business is booming in the trade finance market as exporters and importers return to a tried and tested form of credit amid the chaos of the financial crisis, bankers in the sector say.

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