Why are futures contracts defined as symmetrical contracts

Assignment Help Microeconomics

Reference no: EM132177218

Question: 1. Why are futures contracts defined as symmetrical contracts, while options, caps, and floors are described as asymmetrical contracts? How is the asymmetry dealt with in the latter type of contracts?

2. Explain how loan syndication has fostered international financial growth, particularly with regard to loans to governments (sovereign loans). What is the difference between a participation syndicate and a direct loan syndicate?

Reference no: EM132177218

Questions Cloud

What would you estimate the eurodollar deposit rate to be : What would you estimate the eurodollar deposit rate to be if the domestic U.S. dollar deposit rate is 6½ percent, the reserve requirement on time deposits.

Develop skills and abilities in order to expand operations : Organizations often find that they need to develop new skills and abilities in order to expand their operations internationally

How can you use the futures market to hedge : Because futures contracts are short-term, three-month contracts for fixed value, how can you use the futures market to hedge against longer-term risk.

What is the difference between a normal swap and basis swap : Briefly explain the benefits that accrue to each of the contracting parties in a eurodollar interest rate swap. What is the difference between a normal swap.

Why are futures contracts defined as symmetrical contracts : Why are futures contracts defined as symmetrical contracts, while options, caps, and floors are described as asymmetrical contracts?

What is the bank deposit insurance assessment rate : Webb Bank has a composite CAMELS rating of 2, a total risk-based capital ratio of 10.2 percent, what is the bank's deposit insurance assessment rate

How would you modify your explanation : Suppose that there is an increase in national income in a country. Under a fixed exchange rate system, according to the monetary approach, will the country's.

Describe the physical characteristics and nature of space : Describe the physical characteristics and nature of the space? Is it an urban green space? A park? What are the different features of the space?

How could a greater understanding of theories related : How could a greater understanding of theories related to deviance and crime in society change or be important to your professional goals and aspirations?

User Account

All Pages