Reference no: EM132977138
Questions - Explain the following question in more details solution
1. What is financial asset standardization?
2. Understand the difference between debt and equity.
3. Are financial assets and financial instruments the same thing?
4. Distinguish between main and secondary markets in the stock market.
5. There are some similarities between forwards, futures, and options. Give examples of these characteristics.
6. Why does an investor want to invest in derivatives?
7. When trading derivatives, distinguish between long and short positions.
8. What is the difference between futures, options, and forwards?
9. Discuss the derivatives market's position of hedgers, speculators, and arbitrageurs.
10. Illustrate what embedded derivatives are using examples.