Players of derivatives markets

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Reference no: EM132400047

Question 2 - Part B. Players of Derivatives Markets [Useful for Step (4) of Individual Assignment - Part I]

Discuss the derivatives markets of your proposed new options contracts. Provide detailed discussions and examples of the major types of investors/traders who will be trading your proposed new options contracts, including all of the following participants. Provide examples of different types of investors who will:

• Case (A) Long Call Options on your proposed new underlying asset; (Who will Long Call options? Talk about hedgers and speculators who will take long position of your proposed new Call option contacts)

• Case (B) Long Put Options on your proposed new underlying asset.; and (Who will Long Put options? Talk about hedgers and/or speculators who will lake long position of your proposed new Put option contacts)

Explain why these investors traders will be interested in trading your proposed new derivatives and benefit from your proposed financial innovations.

Reference no: EM132400047

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