Question
A. The bonds price sensitivity to changes in the interest rates can be measured using duration, discuss the limitations of using this approach? [5 marks]
A. The bonds price sensitivity to changes in the interest rates can be measured using duration, discuss the limitations of using this approach? [5 marks] B. Explain 3 ways in which derivatives can be used in hedging against risk? [5 Marks] C. You own a ginger drink manufacturing company and will be harvesting from April through August amid the Covid-19 pandemic its expected that the price of freshly harvested ginger will rise as there is a strong believe that it surprises and treats flu. Explain how you would hedge against price risks? [5 Marks] D. How are securities traded on the OTC Markets?
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