1. 10% stock market correction, explain how could you as a portfolio manager or risk manager to hedge or prevent your portfolio from losing money by using derivative?
2. You visited Switzerland over summer and brought back 8,809.8 swiss francs to the United States. How many U.S. dollars will you get if you exchange your swiss francs for U.S. dollars? The exchange rate is 1 U.S dollar = 0.97 swiss francs.
3. Payday loans are very short term loans that change very high interest rates. You can borrow $240 today and repay $300 in2 weeks. What is the compounded annual rate implied by this 2t% rate charged for only2 weeks?