Assignmnet 1 -Compatibility Mode Layout References Mailings Review View Help Tell me what you want to do Energy Trading Assignment 1 1).What is Risk? 2) Name the 3 offices within a trading organization and list their functions 3). What is Value at Risk (VaR)? 4).List and define the three main types of risk a trading organization faces. 5).How can each type of risk be managed? 6).List and define the components of the risks mentioned above. 7) What is marking-to-market? 8).List 4 tools that can be used to control price risk 9) What is a forward and what is a future and how do they differ? Forward Future- An exchange traded supply contract between a buyer and a seller whereby the buyer is obligated to take delivery and the seller is obligated to provide delivery of a fixed amount of a commodity at a predetermined price at a specific location. They are a cash settled contact based on a standardized physical market. They are also traded on a regulated exchange and are settled based on their current value in the market | 10).What are the advantages and disadvantages of bilateral/OTC contracts Assignmnet 1 -Compatibility Mode Layout References Mailings Review View Help Tell me what you want to do Energy Trading Assignment 1 1).What is Risk? 2) Name the 3 offices within a trading organization and list their functions 3). What is Value at Risk (VaR)? 4).List and define the three main types of risk a trading organization faces. 5).How can each type of risk be managed? 6).List and define the components of the risks mentioned above. 7) What is marking-to-market? 8).List 4 tools that can be used to control price risk 9) What is a forward and what is a future and how do they differ? Forward Future- An exchange traded supply contract between a buyer and a seller whereby the buyer is obligated to take delivery and the seller is obligated to provide delivery of a fixed amount of a commodity at a predetermined price at a specific location. They are a cash settled contact based on a standardized physical market. They are also traded on a regulated exchange and are settled based on their current value in the market | 10).What are the advantages and disadvantages of bilateral/OTC contracts