Swaptions relative to the current economic environment

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Reference no: EM131623112

Analyze and discuss the usefulness of swaptions (swap options) relative to the current economic environment. Give three specific examples of how a bank can use this derivative both for risk management and speculation. Additionally, a primary responsibility of a model developer is to decide what to and what not to share with the end user of the model, discuss this aspect of modeling relative to options and derivatives, for example the Barclay’s Capital acquisition of Lehman Brothers assets.

Reference no: EM131623112

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