金融市场作业代写 Week 13 review questions

Week 13 review questions

金融市场作业代写 Describe the sequence of payments for a 5 year, 6 monthly plain vanilla interest rate swap where A pays to B GBP 10%, and receives


  1. What is the difference between a swap and a forward contract?  金融市场作业代写

 


  1. Describe the sequence of payments for a 5 year, 6 monthly plain vanilla interest rate swap where A pays to B GBP 10%, and receives USD9% on a notional principal of GBP10m

 


  1. Using the information in Q2 what is the equivalent expression of the swap in forward contracts? Does A have a short or long position?

 



  1. How is a total return swap different from a credit default swap?  金融市场作业代写



 


  1. If B has an absolute advantage over A in fixed and floating rate debt markets, is a mutually beneficial swap possible? Explain.

 


  1. Examine the payoff table on p425 of Bailey. If the swap payment was renegotiated such that A paid 9.5%, how would other payments and the payoffs be impacted?

 


  1. Above what required payment for A under the swap (p425) would the swap cease to be feasible? Why?  金融市场作业代写

 


  1. Examine the payoff table on p427 for a foreign exchange swap. Why is the intermediary exposed to currency risk? (How is it funding its required payments?)

 


  1. How can the intermediary hedge its risk? Provide an outline of the trade it would need to make.

 


  1. Outline 2 major risks with swap contracts. Discuss whether and how these risks could be correlated. 金融市场作业代写

金融市场作业代写

更多代写:cs代写    计量经济代考   机器学习代写      r语言代写  代写会计论文

发表评论

客服一号:点击这里给我发消息
客服二号:点击这里给我发消息
微信客服1:essay-kathrine
微信客服2:essay-gloria