How do I backdate settlement prices on the Chicago Mercantile Exchange? Or is there another exchange that allows you to backdate settlement prices? Also, how do you calculate the cumulative gain closing out a market to market position on long contracts?

Q: construct a margin account with daily settlement.   j) describe the various types of participants…

A: A derivative is a financial contract whose value is derived from the underlying asset, which could…

Q: c) Does every loan, which consists of an initial outlay followed by a sequence of re- ceipts, have a…

A: A loan can be defined as the financial support received from the lender by the borrower. In…

Q: Advantages of currency futures contracts relative to forward contracts include _     a. Higher…

A: A futures contract is a legal contract to purchase or sell an underlying asset or security at a…

Q: What are the questions you should ask your broker before you start trading according to ASX?

A: Broker is a person who deals with the securities. Investors contact brokers to buy the securities…

Q: discuss the motives a company may have for engaging in currency and intrest rate swaps

A: A swap is a two-party derivative transaction that includes the exchange of pre-agreed cash flows. It…

Q: d. Forward contracts are not traded in any exchanges across the world.

A: Features of a forward contract include these of the above mentioned options: Forward contracts are…

Q: A firm gives all its employees American-style call options on the firm's stock. The options have a…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: Exchange rate fluctuations can be used as a tool of speculation by speculators. Make an example of…

A: Speculators who anticipate rising prices want to make a profit by buying futures contracts.…

Q: Will some of the parties receive a preferred return? Will the preferred return be paid from annual…

A: The preferred return is a distribution of profit earned by the organization to their elite class of…

Q: Will US$/C$ futures exchange rate go up or down? 2. Will US$/C$ spot exchange rate go up or down?

A: The value of one country's currency in presented terms of the value of another country's currency is…

Q: Define each of the following terms: f. Spot rate; forward exchange rate; discount on forward rate;…

A: The spot rate shall be the value of a good, security, or monetary system for immediate payment.…

Q: How does the interest rate parity condition Maintain equilibrium in the foreign exchange Market?

A: The question asks how the interest rate parity (IRP) condition helps keep the foreign exchange…

Q: Which of the following refers to exposure netting?  1. It is a strategy based on adjustments of the…

A: exposure netting is defined as a method of hedging transaction risk by offsetting exposure in one…

Q: What is a swap? Describe the mechanics of a fixed-rate swap and a floating-rateswap.

A: SwapsAn agreement amongst 2 counterparties i.e parties, a financial institution for the exchange of…

Q: Trading in derivatives

A: Derivatives are the type of contracts that force the value of an underlying asset. These contracts…

Q: Is the “forward price” the same thing as the “value of the forward contract” Explain.

A: Derivative is defined as the contract, which are between the two or more parties, who has the value…

Q: Answer the following: a. Explain why the interest parity condition must hold if the foreign exchange…

A: Foreign exchange market is referred as the market, where the different currencies used to get…

Q: What types of risks are interest rate andexchange rate swaps designed to mitigate?Why might one…

A: Introduction: An interest rate swap is a form of derivative contract whereby two counterparties…

Q: Answer the below questions. (a) For a single-name credit default swap, what is the difference…

A: A Credit Default Swap (CDS) is a financial contract between two parties where one party (the buyer…

Q: Why might a company become involved in an interestrate swap contract to receive fixed interest…

A: Interest rate swap contract: It is an agreement between the two parties who are in contract, where…

Q: Demonstrate how interest rate and currency swaps are constructed and discuss the comparative…

A: Two parties can exchange cash flows based on various interest rates or currencies using financial…

Q: Why would an investor consider doing an exchange or an installment sale?

A: An installment sale is one way to recover profits according to the General Accounting Principles…

Q: Choose the correct answer and give short explaination. 3. Advantages of a fixed exchange rates…

A: Fixed exchange rate means that the exchange rate for business transaction between 2 parties in…

Q: An interest rate floor: OA) obligates both parties to trade at a preset price at a future date B)…

A: An agreement that sets a minimum interest rate on a loan or other financial instrument is known as…

Q: According to the efficient market school, do the best job at predicting future spot exchange rates.

A: Efficient market -It is such a market in which prices reflect all available market information.

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.