Analyze the complexities of the derivative markets

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Reference no: EM131992123

"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.

Reference no: EM131992123

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