Finance Questions

Q1. Explain the classification of Future traders by trading style?

Q2. Suppose there is a commodity in which the expected future spot price is $60.To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50.

Find the future s price?

Q3. Explain the difference between a short hedge and a long hedge.

Q4. Briefly explain Interest rate swap and currency swap.

Answers:

References