Mutual funds developed spontaneously in mature markets such as the United States and United

Kingdom before legislation governing such funds developed. These funds became prevalent relatively

late in developed marketsbeginning in the 1920salong with the formation of a sizeable middle class

population, which diversified their investments through such funds; and the development of financial

markets, which featured a broad range of liquid securities in which such funds could invest their capital.

a) What is mutual funds? and based on your understanding using your own why do you

think that the mutual funds has been encourage in many countries?

b) U.S professional football team plans to play an exhibition game in the United Kingdom

next year. Assume that all expenses will be paid by the British government and the team

will receive a check for 1 million pounds. The team anticipates that the pound will

depreciate substantially by the scheduled date of the game. How can the team hedge it

position ?

c) What are the roles of investment banks to firm who wants to new issue of securities in the

primary market ?