1. How does a financial institution hedge with stock index futures or stock index options? Explain why stock index futures and options may reflect investor expectations about the market more quickly than stock prices 2. Regulators of Derivatives: Name 3 regulators of derivative trading. What are the acronyms and what do they stand for? 3. How do Investment banks make money in the futures markets, the options markets and in the swap markets? 4. How do futures and options exchanges make money? What services do they provide? 5. Hedging with Interest Rate Swaps: California Savings & Loan uses short-term deposits to fund fixed-rate mortgages. What is CS&Ls interest rate risk? How can CS&L use interest rate swaps to hedge its interest rate risk