answer the following questions for internaional banking : 250 words for each

a. What are derivative securities? How important is the derivative market in the global economy and which two types of measures are used to value it? Explain.

b. Describe how an investment bank can create a mortgage backed security. What is an inverse floater? Is it advisable to take a large unhedged exposure to an inverse floater?

c. Explain how a leveraged buyout (LBO) works? What defenses exist to thwart an LBO? How does LBO differ from MBO?

d.What is money laundry? What are the regulations for money laundry in Bahrain? Discuss any recent case from Bahrain or from this region.

e. What is country risk? Why country risk is important to international bank? Which agencies measures country risk?