FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk

Derivatives are financial instruments that may be used to decrease the risks borne by individual agents but may not be ideal to decrease the risk prevalent in the system overall. However, derivatives may be effective to only reallocate and transform the risks. Comment

course name "Financial Institutions & Markets" please asap for 20 marks.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Invested How I Learned To Master My Mind My Fears And My Money To Achieve Financial Freedom And Life With A Little Help From Warren Buffett, Charlie Munger, And My Dad

Invested How I Learned To Master My Mind My Fears And My Money To Achieve Financial Freedom And Life With A Little Help From Warren Buffett, Charlie Munger, And My Dad

Authors: Danielle Town, Phil Town

1st Edition

0062672649,0062672673

More Books

Students also viewed these Finance questions

Question

★★★★★
You have estimated spot rates as follows: r1 = 5.00%, r2 = 5.40%, r3 = 5.70%, r4 = 5.90%, r5 = 6.00%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)?...

Answered: 1 week ago

Question

★★★★★
how would you do question 8 me Value of Money 8. You are the owner of a factory located in a hot tropical climate. The monthly production of the factory is $100,000 except during June-September, when...

Answered: 1 week ago

Question

★★★★★
=+. I wish he would get off of the phone.

Answered: 1 week ago

Question

★★★★★
John Waddell Construction Company (Waddell) maintained a checking account at the Longview Bank & Trust Company (Longview Bank). Waddell drafted a check from this account made payable to two payees,...

Answered: 1 week ago

Question

★★★★★
Since the 1 9 6 0 s , a notable trend in the demographics of the multinational enterprise has been the rise of U . S . multinationals. True or False

Answered: 1 week ago

Question

★★★★★
6. Find the exact area of the surface obtained by rotating the curve = x + 1, 0 6. Find the exact area of the surface obtained by rotating the curve 2 x + 1, O xs 3 about the x-axis.

Answered: 1 week ago

Question

★★★★★
60. Marlon, married on June 5, 2016 died on April 29, 2018 with the following data: Gross estate conjugal, P3,000,000; exclusive, P2,000,000. Said amount includes a land which he received as wedding...

Answered: 1 week ago

Question

★★★★★
You bought one of BB Co.'s 10% coupon bonds one year ago for $1100. These bonds make annual payments, have a face value of $1000 each, and mature seven years from now. Suppose you decide to sell your...

Answered: 1 week ago

Question

★★★★★
Each of the following secondary authorities specifically discusses an intoxicated party's ability to form a contract. Retrieve and review each source by typing or copying the citation into the search...

Answered: 1 week ago

Question

★★★★★
On July 1, 20x0, Ran County issued realty tax assessments for its fiscal year ended June 30, 20x1. On September 1, 20x0, Day Co. purchased a warehouse in Ran County. The purchase price was reduced by...

Answered: 1 week ago

Question

★★★★★
Why is Disneys ROE lower than Netflixs in 2019? Should Antonia Crowley be concerned? Explain why she should or should not be concerned?

Answered: 1 week ago

Question

★★★★★
What is required for effective management of IMC?

Answered: 1 week ago

Question

★★★★★
How would you define IMC?

Answered: 1 week ago

Question

★★★★★
How can the barriers to IMC be overcome?

Answered: 1 week ago

Previous Question Next Question