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Q1) (scenario 1) - a bank uses one CDS to LEND 1 million at fixed rate of five years to a new customer for business
Q1) (scenario 1) -
a bank uses one CDS to LEND 1 million at fixed rate of five years to a new customer for business expansion
what is the (identity the risk, explain the risk scenario to risk process) also what is the connection among the various risks
Q2) (scenario 2)-
an insurance company invest $10 million of its policy premiums in a 10 year corporate bond
Q3) (scenario 3)-
a banks balance sheet shows 1 million in cash 9 million in loans 6 million in deposits 2 million in subordinated debts and the rest in equity it expects market interest to increase by 1% resulting in that drain of 2 million deposits over the year
Q4) (scenario 4)-
are banks purchases $1 million of its ordinary shares
A) identify one only risk inherent in each of the above scenarios
B) explain the rest
C) explain clearly how much scenario might result in the risk you have identified
Can someone please help me ASAP
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