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recall from the chapters on options that we learned about bull and bear spreadsintramarket futures spreads also are
explain why interest rate swaps are more widely used than currency and equity swapsexplain how swaps are similar to but
1 why is notional principal often exchanged in a currency swap but not in an interest rate or equity swap why would the
1 an interest rate swap has two primary risks associated with it identify and explain each risk2 define and explain a
show how to combine a currency swap paying swiss francs at a floating rate and receiving japanese yen at a floating
a hedge fund is currently engaged in a plain vanilla euro swap in which it pays euros at the euro floating rate of
an asset management firm has a 300 million portfolio consisting of all stock it would like to divest 10 percent of its
how are the payment terms of an fra different from those of most other interest rate derivatives explain how fras are
show how a combination of interest rate caps and floors can be equivalent to an interest rate swap what are the
suppose your firm had issued a 12 percent annual coupon 15-year bond callable at par at the 8th year it is now two
a firm has previously issued fixed rate noncallable debt because interest rates are perceived to be temporarily high
explain the advantages and disadvantages of implementing portfolio insurance using stock and puts in comparison to
explain the difference between path-dependent options and path-independent options and give examples of each give an
contrast lookback options and barrier options and explain the difference between in- and out-optionsexplain how weather
how is the practice of risk management similar to hedging and how is it differentidentify why risk management can be
identify the three parties involved in any credit derivatives transaction and describe how they differ in their roles
identify and explain the primary methods of managing credit risk for derivatives dealers identify and explain four
comment on the current credit risk assumed for each of the following positions treat them separately that is not
explain how closeout netting reduces the credit risk for two firms engaged in several derivatives contracts how does
explain why end users who conduct their risk management operations in the treasury department should not require the
explain how an organization determines whether a hedge is sufficiently effective to justify hedge accountingdescribe
explain the advantages for senior management having detailed written policies for financial risk managementdefine and
if the initial margin for one contract of crude oil was 1000 and the maintenance level was 800 how far would prices
if you wish to protect yourself from falling prices what type of an order would be the best to useif you wish to
if you wish to catch a breakout higher in the market but are concerned about paying too much which type of order should