Please answer to the following question. Please use as mandatory the attached material as source and the website mentioned below. Please write around 160 words for question 1) Who are High risk clients/industries; in regards to PEP's? High-risk clients who are willing to take the risk of the "derivatives", "callable range accruals", "soft knock in knock out forwards", "reverse convertible with floor" and "alpha returns that are robust in bull, bear and flat markets" and other such packets devised by banks and financial institutions. The objective of these packets is to lure in investors. The high risk clients were also those willing to procure the following: Interest rate linked notes where floating interest rates could be exchanged for fixed interest rates and vice versa. Equity linked notes - where investors could capitalize the price movement of underlying stocks. Foreign exchange and commodity linked notes -where investors could capitalize on the fluctuating cost of underlying currencies or commodities (e.g. gold, silver, sugar and oil). Hybrid linked notes -where the investor could combine a number of instruments. Credit linked notes 2) Who do PEPs pose a threat to? Structured packages can be used ethically and in a helpful way, but they can also be misused contributing to financial meltdowns when they fall in the wrong hands. All these packets pose a threat to low-risk small business investors - retail customers - who are ignorant of the underlying risks
Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use.
Before you begin, save this document to your computer. You will need to submit your answers in the area indicated below.
Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use.
Before you begin, save this document to your computer. You will need to submit your answers in the area indicated below.
4. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use.
Answer the following questions in 100 to 200 words each. Provide citations for all the sources you use.
YOUR ANSWERS MUST BE YOUR OWN WORK. If you wish to introduce other sources of information, this must be referenced
There are lots of methods to solve the changes in foreign currency and interest rates issue, however, derivative financial instruments are the major tunes Nike enterprise has used to tackle this issue. Despite the fact that this approach does not wipe out comprehensively the risk of foreign exchange, Nike enterprise still utilize it to minimize or delay the negative consequences. Specifically, the derivative financial instruments comprise embedded derivatives, interest rate swap, and foreign exchange forwards and options contracts (Nike annual report, 2014).
Please do not use your text or any other information (web, articles, your class notes from this class or any other, and people) to complete this exam
Partners Healthcare had established several financial resources pools, such as the short-term pool (STP) and the LTP, so that they can satisfy different needs of the several hospitals in the network. In more detail, the STP was invested with very high-quality, short-term fixed-income financial instruments. The average maturity of these instruments is about one to two years. STP is always treated as the risk-free part of the hospitals’ holdings. On the other hand, the LTP is thought as the risky part of holdings. It consists of different forms of equity and a smaller fixed-income part.
( this section you need to change word I copy from article ) and if you can make it short and simple.
Risks that Pine Street Capital willing to bear is: (1) the individual security related risk and (2) the leverage risk.
from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or
Another financial vehicle that could be problematic was CDS (credit default swap). CDS is a financial derivative works like insurance on securities. The underwriter is obligated to pay a pre-determined fee to counterparty if a certain security default. In return, underwriters charge a fee as compensation. CDS can be used to hedge against risks. However there are still some difference between a CDS and an insurance contract.