i need help with #5

Favorites say Questions (20 points each - Explain in detail) What are the differences between futures and forward markets in terms of counterparty credit risk (3pts). contract delivery expected (3pts), timing flexibility (3pts), regulation (3pts), liquidity requirements (3pts), and capital requirem Explain in details. 2. Should a corporation hedge? Why might it increase firm value? Are there any reasons why a firm would not want to he Explain in details. 3. In class we discuss that given a choice between liquidity and basis risk, futures markets chose institutional arrangements th favored liquidity, Who is most impacted by this choice and why do you think maximizing liquidity is more important than minimizing basis risk? Explain in details. 4. The movies Goldfinger James Bond Movie) and Die Hard 3 (Die Hard with a vengeance) both involve the perpetrators doing something to gold. Assume that the bad guys succeed with their plot, what would be the impact on gold prices and gold spreads In each case? Please explain how you reached that conclusion (see plot summaries of the movies below. Explanation Questions (10 Points each - Explain briefly) 5. For the cost of carry model to be effective, what physical characteristics should a commodity have? Definition & Short Answer Questions (5 Points each) 6. Define hedging effectiveness. 7. Why are relatively few futures contracts settled by delivery