Explain the differences between forwards and futures

Assignment Help Financial Management

1. Elaborate the concept of risk in Finance. How is value affected by risk? Does anything else affects value? Explain. EXPLANATION.

2. Explain the differences between forwards and futures. And, what does it mean to post margins?

3. Is there a general pattern of dynamic hedging with options?

What is the amount currently in the investor account : Suppose an investor has a $5 million long position in T-bond futures. What is the amount currently in the investor’s account?

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We will derive two-state call option value in this problem : We will derive two-state call option value in this problem. The range of S is 100 while that of C is 20 across the two states. What is the hedge ratio of call.

Explain the differences between forwards and futures : Explain the differences between forwards and futures. And, what does it mean to post margins?

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