QUESTION 1
Discuss the following terms with supported examples
(a) Country risks
(b) Funding risks
(c) Market risks
QUESTION 2
Total return swaps are used by financial firms to manage credit risks. Discuss.
QUESTION 3
Transaction, Translation and Economic Exposure are not important for a domestic firm. Discuss (use instance to support your answer).
QUESTION 4
Currency futures can be used to manage a firm's currency exposures. Discuss (Use instances to support your answer).
QUESTION 5
Firms borrowing or lending money from and to financial institutions can use different interest rate derivatives to manage their interest rate exposures. Discuss in relation to the derivatives which a firm can use to hedge interest rate risk. Use instances to support your answer.