5. DESCRIBE THE MARGIN AND MAINTENANCE MARGIN OF A FUTURES CONTRACT. SHOW THE OUTCOME OF BUYING A FUTURES WHERE PRICES INCREASE BY 5% AND THERE IS A 5% MARGIN. SUMMARIZE THE DETAILS OF EURODOLLAR FUTURES: PRICING, LIBOR, BPS, ETC. OUTLINE HOW A TREASURER WOULD HEDGE AGAINST POSSIBLE FALLING INTEREST RATES WITH EURODOLLAR FUTURES.

6. COMPARE THE ADVANTAGES AND DRAWBACKS OF HEDGING WITH FUTURES, FORWARDS AND OPTIONS. COMMENT ON THE STATEMENT ONCE A POSITION IS HEDGED, PRICE VOLATILITY IS NO LONGER A MANAGEMENT CONCERN. DEFINE A LONG AND A SHORT HEDGE. WHAT IS FINANCIAL LEVERAGE AND HOW DOES IT AFFECT FUTURES AND OPTIONS? SHOULD YOU ALWAYS HEDGE EXPOSURES?

7. WE STARTED THE CLASS ANALYZING INTEREST RATE RISK AND ENDED THE CLASS ANALYZING INTEREST RATES AND MACROFINANCIAL RISKS. HOW DOES A RECESSION GET STARTED? WHAT DOES IT TAKE TO TURN IT INTO A DEPRESSION? DOES THE NOMINAL INTEREST RATE REACT UNIFORMLY TO MONETARY POLICY DURING RECESSIONS AND RECOVERIES? WHAT ROLE DO FISCAL AND MONETARY POLICIES HAVE DURING THE BUSINESS CYCLE?