Futures Markets and Risk Management

Please respond to the following:

*** 100-250 Words *** No Wikipedia allowed ***

• i) Imagine that you are a financial manager. Determine three key drivers for evaluation when considering whether to invest in the futures market, indicating your likelihood to do so. Provide support for your rationale.
• ii) Justify why using interest rate swaps is an effective way to control risk and improve return for a fixed income portfolio. Provide support for your justification.