Interest rate parity, Financial Management

Assignment Help:

QUESTION 1

(a) What are the differences between futures and forwards?

(b) Clearly explain the following position on options

i) Going long on a call option

ii) Going long on a put option

QUESTION 2

Write briefly on the following

1. Interest rate Parity

2. Purchasing Power Parity

3. Arbitrage in foreign exchange market

4. Letter of credit

5. Interest rate swaps


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