by Choi Ming Yee, Fung Lai Shun, So Wai Ching. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1996. / Includes bibliographical references (leaves 87-91). / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF FIGURES --- p.v / LIST OF TABLES --- p.vi / LIST OF ABBREVIATIONS --- p.vii / Chapter / Chapter I. --- INTRODUCTION --- p.1 / Chapter II. --- PERSPECTIVES OF INTEREST RATE --- p.3 / Interest Rate and Capital Market --- p.3 / Trade-off between Current and Future Consumption --- p.3 / An Economy without Exchange --- p.4 / An Economy with Capital Market --- p.5 / Determinants of Interest Rate --- p.7 / Credit Considerations --- p.8 / Term Structure --- p.9 / Loanable Funds --- p.11 / Interest Rate Risk --- p.11 / Interest Rate Volatility --- p.15 / Chapter III. --- DEVELOPMENT OF INTEREST RATE DERIVATIVES --- p.20 / The Emergence of Derivatives Markets --- p.20 / Interest Rate Derivatives Market --- p.23 / Interest Rate Futures --- p.24 / Interest Options --- p.25 / Interest Rate Swaps --- p.27 / Forward Rote Agreements (FRAs) --- p.29 / Chapter IV. --- MACROECONOMIC DEVELOPMENT IN ASIA PACIFIC REGION --- p.31 / Chapter V. --- MOTIVATION FOR FINANCIAL LIBERALIZATION --- p.33 / Limitations in Old Systems --- p.33 / Interest Rate Ceilings --- p.33 / Exchange Controls --- p.34 / Portfolio Selection and Credit Rationing --- p.35 / Taxes and Reserve Requirement --- p.37 / Advantage of Liberalization --- p.38 / Chapter VI. --- ECONOMIC VOLATILITY --- p.41 / Capital Mobility and International Integration --- p.41 / Monetary Policy --- p.45 / Chapter VII. --- THE DEMAND AND SUPPLY OF INTEREST RATE DERIVATIVES --- p.48 / Can Hedging Add Value to the Company? --- p.49 / Can Hedging Alter the Discount Rate of a Company? --- p.49 / Chapter VIII. --- THE ASIAN MARKET --- p.58 / New Derivatives Exchanges --- p.61 / Chapter IX. --- FORCES DRIVING DERIVATIVES GROWTH --- p.63 / Sustained Shifts in Volatility --- p.64 / The Demand for New Ways to Transfer Interest Rate Risk --- p.66 / The Demand for Liquidity --- p.69 / Chapter X. --- THE FUTURE --- p.81 / APPENDIX --- p.86 / BIBLIOGRAPHY --- p.87