Why might otc derivatives be considered more risky

Assignment Help Accounting Basics
Reference no: EM13994066

1. Why might OTC derivatives be considered more risky than exchange-traded derivatives? 

Reference no: EM13994066

Questions Cloud

Minimum natural frequency of a hydraulic cylinder : Calculate the minimum natural frequency of a hydraulic cylinder (L = 25 cm) and (D = 4 cm) connected to a 45 kg load when the hydraulic fluid is an oil with B= 1.7 GPa
Theoretical inertial pressure likely cause failure : Consider a garden hose that is 30 m long and 2 cm in diameter. The hose initially passes water ( Density = 1000 kg/m3) at a rate of 15 liters per minute. If the flow rate decreases linearly by 150 lit/s2, what is the inertial pressure generated in th..
Should citizens produce anticipate taking out a loan during : Prepare a monthly cash budget for Citizens Produce Co-op for the quarter ended September 30. Accounting Connection. Should Citizens Produce anticipate taking out a loan during the quarter? If so, how much should it borrow, and when?
What extra cost does the hospital incur-cycle-service level : Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15 and the cost of holding one box for a year is 15 percent of the ..
Why might otc derivatives be considered more risky : Why might OTC derivatives be considered more risky than exchange-traded derivatives?
Hydraulic fluid : Hydraulic fluid ( density= 840 kg/m3) passes through a knife-edged orifice, characterized by Cd = 0.6 at a volumetric flow rate of 2 liters per minute. If the pressure drop across the orifice is 2 kPa.what is the cross sectional area of the orifice?
Uses a continuous review inventory control system : Petromax Enterprises uses a continuous review inventory control system for one of Its SKUs. The following information is available on the item. The firm operates 50 weeks in a year. What is the economic order quantity for this item?
Specify independent and potentially confounding variables : For each item below, specify the independent, dependent, and potentially confounding variables. Eighty rats were weighed and then randomly assigned into four groups. Each group of rats is fed identical diets except for the amount of Calcium they rece..
Explain how this might encourage front running by traders : In 2001, the NYSE switched from a fractional pricing system (stock priced in increments of 1/8 of a dollar) to a decimal pricing system (stock priced in increments as small as 1 cent). Explain how this might encourage front-running by traders?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd