1. Large banks like JPM have often over a trillion dollars of notional derivative exposure with large corporations, SPVs, funds and other financial institutions. Is that exposure perfectly offset (e.g. a 10 year dollar euro currency option offset by a 10 year euro dollar currency option)? Can you think of other examples where there isnt a perfect offset? How do they minimize these exposures and how does that affect the competitiveness of the pricing they are able to offer their customers? How does that tie into the Greeks? (20 points)