DIscussion:
Examine the derivative market structure. Justify the economic agents necessary to create efficient and effective utility. 200 words.
Question 1
Examine the meaning of overshooting and how is it corrected.
Question 2
Assess credit risk and re-pricing interest rates risk.
Question 3
Relate buyer of a call, writer of a call, and buyer of a put.
Question 4
Analyze and propose the major differences of interest rates swaps and currency swaps.