DIscussion:

Examine the derivative market structure. Justify the economic agents necessary to create efficient and effective utility. 200 words.

Question 1

Examine the meaning of overshooting and how is it corrected.

Question 2

Assess credit risk and re-pricing interest rates risk.

Question 3

Relate buyer of a call, writer of a call, and buyer of a put.

Question 4

Analyze and propose the major differences of interest rates swaps and currency swaps.