Assignment: Derivatives & Risk Management
You create the case. You decide what the problem is and then design a solution using derivatives. Discuss the issues, risks, and solutions for each character. Show the profit/loss potential of each strategy. You can use actual quotes from Yahoo Finance, Chicago Board of Trade, New York Merc or any other source.
Bond Market Analysis
Bond Portfolio Construction Project
Case: You have inherited $250,000 million in cash and are charged with building a portfolio consisting of bonds.
Format:
1) Economic Climate - Describe the current economic climate in the countries or regions that you will be investing. This includes current and expected GDP, inflation, and any other economic or demographic indicator that helps justify your bond strategy.
2) Create a pie chart with a legend or table that visibly shows the breakdown of how your portfolio is invested. Cash or money market funds are a sector you can use.
3) Discuss each sector and bond type that you have included in your portfolio. Describe why you included it?
4) Be concise with your points. The paper should be 2-5 pages.
5) Discuss reasons you are excluding from your portfolio a sector, country or region.