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1. An agreement to lease a car can be thought of as a set of derivative contracts. Describe them.

2. What are the risks and rewards of writing and buying options? Are there any circumstances under which you would get involved? Why or why not?

3. What kind of an option should you purchase if you anticipate selling $1 million of Treasury bonds in one year's time and wish to hedge against the risk of interest rates rising?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92835421

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