Financial Derivatives Task

Answer all of the questions below. Remember to give a full explanation in your response to all questions: Explain fully in each case, whether you agree or disagree with the following statements. > 1 Although no forward market exists in the domestic money market, hedging interest rate risk is still possible without using a derivative instrument. > > > > 2 Futures contracts in an asset and forward contracts in the same asset differ in fundamental ways and so their prices are unrelated. > > > > 3 A swap contract can be regarded as a strip of forward contracts in the same asset. > > > > 4 Combining a long position in an asset with a short position in a put in the same asset limits the amount that can be lost on the investment. > > > > 5 Put-Call parity implies that a put and a call in the same asset with the same expiry date will always trade at the same price. > Take the following points into account: ? that relevant and correctly explained theory is used to answer the questions; ? Ideas are well developed and clearly explained; ? The approach is strongly analytical and/or quantitative; ? That good, clear English is used throughout; ? Relevant examples are used; ? Correct referencing is used and a bibliography is included. ## Deliverables For this 5 Questions words limited (2500) words and write Questions with answer (Report) Add also (diagrams, relevant , explain why? analysis , , you must include a bibliography and Referencing (Harvard Style)) I will upload useful Books