Questions from Financial Management

Q: Why are most futures positions closed out through a reversing trade rather

Why are most futures positions closed out through a reversing trade rather thanheld to delivery?

Q: What is the difference between the Euronote market and the Eurocommercialpaper market

What is the difference between the Euronote market and the Eurocommercialpaper market?

Q: Discuss different ways that dominant investors may establish and maintain controlof a

Discuss different ways that dominant investors may establish and maintain controlof a company with relatively small investments.

Q: Suppose Morgan Guaranty, Ltd. is quoting swap rates as follows

Suppose Morgan Guaranty, Ltd. is quoting swap rates as follows: 7.75–8.10 percentannually against six-month dollar LIBOR for dollars and 11.25–11.65 percentannually against six-month dollar LIBOR for...

Q: Discuss and compare the costs of hedging by forward contracts and optionscontracts

Discuss and compare the costs of hedging by forward contracts and optionscontracts.

Q: How can the FX futures market be used for price discovery?

How can the FX futures market be used for price discovery?

Q: What is the major difference in the obligation of one with a

What is the major difference in the obligation of one with a long position in afutures (or forward) contract in comparison to an options contract?

Q: Explain purchasing power parity, both the absolute and relative versions.

Explain purchasing power parity, both the absolute and relative versions. Whatcauses deviations from purchasing power parity?

Q: What is meant by the terminology that an option is in-,

What is meant by the terminology that an option is in-, at-, or out-of-the-money?

Q: List the arguments (variables) of which an FX call or

List the arguments (variables) of which an FX call or put option model price is afunction. How do the call and put premiums change with respect to a change in thearguments?