Explain the process of hedging using the concept of farmers

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Problem 1: What is a derivative and what are its four types? Explain each.

Problem 2: Describe the process of hedging using the concept of farmers and millers/manufacturing. Strictly use FORWARD CONTRACT only as your derivative.

Problem 3: Aside from volatile asset pricing and jurisdictional risk, what do you think are the other risk of engaging with foreign portfolio investments? Explain each.

Problem 4: Considering the knowledge that you have acquired from the Investment and Portfolio Management course subject, which of the four derivatives are of vital monitoring and why?

Reference no: EM132985081

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