"Derivative Markets" Please respond to the following: SEPARATELY. 1 PARAGRAPH EACH WITH EXAMPLE.
QUEST 1: 1 PARAGRAPH
Analyze the complexities of the derivative markets and how the reporting of derivatives may be deceiving to investors.
QUEST 2: 1 PARAGRAPH W/ EXAMPLE
Make a suggestion for improving the methods for valuing derivatives so that the reporting becomes more transparent for investors.
"Hedging" Please respond to the following:SEPARATELY. 1 PARAGRAPH EACH WITH EXAMPLE.
QUEST. 1: 1 PARAGRAPH
Create a scenario where an investor would benefit from using forward and future contracts to hedge an existing risk exposure.
QUEST. 2:1 PARAGRAPH W/ EXAMPLE
Explain how an increase in interest rates may impact the scenario you created.