In order for a derivatives market to function most efficiently, two types of economic agents are needed:

Question:

In order for a derivatives market to function most efficiently, two types of economic agents are needed: hedgers and speculators. Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

International Financial Management

ISBN: 978-0078034657

6th Edition

Authors: Cheol S. Eun, Bruce G.Resnick

See More Books

Question Posted: Mar 13, 2012 05:25 AM

See More Questions

In order for a linear system with augmented matrix [A ( b] to be consistent, what must be true about the ranks of A and [A ( b]?
In order for a business expense to be deductible it must be ordinary, necessary, and reasonable. Explain what these terms mean.
In order for a company's shares to be listed (traded) on a Canadian stock exchange, the company's annual financial statements must be audited by an independent auditor. Why is an audit important to...
pick 1 1 point A small island nation has license plates that consist of 2 letters ( $ A-Z $ allowed) followed by 3 numbers (0 $ -9 $ allowed). How many plates are possible that do not repeat the...
The bookkeeper for Packard's Country Music Bar left this incomplete balance sheet. Packard's working capital is $90,000 and its debt to assets ratio is 40 percent. Assets Current assets Cash...
What role does globalization play in the spread of environmental degradation, and how can international cooperation be fostered to address global ecological challenges ?
True or False. A technician should always be accompanied by an electrician from the customers site to open and test electrical equipment and never open live electrical cabinets.
Brush Company engaged in the following transactions at the beginning of 2016: a. Purchased a patent (Patent A) for $70,000 that had originally been filed in January 2010. The purchase was made to...
On a level football field, a football is projected from ground level. It has speed 12.0 m/s when it is at its maximum height. It travels a horizontal distance of 75.0 m. Neglect air resistance. What...
Many processor architectures have a load with post-increment instIt is not possible to implement this instruction without either modifying the register file (adding another write port) or making the...
Explain the basic differences between the operation of a currency forward market and a futures market.
Why are most futures positions closed out through a reversing trade rather than held to delivery?
What is web tracking? Visit www.kbb.com. While there, choose two cars that you might consider buying and compare them. Which do you like the best? What would you do now? What are at least three...
What are the factors that may account for the decline in the overall unionization rates over the past 50 years? What are some of the distinctions between the public and private sector unionization...
Jack, Bill and Georgina are the only directors of Sand and Snow Ltd (S&S), a company that sells surfing and snowboarding holiday packages. They each own 10per cent of S&S's shares. The remainder of...
Employers who use independent contractors on a sufficiently exclusive basis may render them "dependent" contractors or even employees. How can employers minimize this risk? Explain briefly.
I feel that having it mandatory by law would help employees take rules more serious and not wanting to attempt to try to surf the web or whatever they could be doing. Elaborate the statement with the...
Vision without action is a daydream. Action without vision is a nightmare. In your opinion how do you understand these quote in regards of the International Business activities.
Enter the appropriate journal abbreviation next to each transaction listed below. Use these transactions and the following information (shown in figure 6.95) to prepare the journals of T W Bucketts...
A horizontal annulus with inside and outside diameters of 8 and 10 cm, respectively, contains liquid water. The inside and outside surfaces are maintained at 40 and 20oC, respectively. Calculate the...
Classify each of the following reactions as an addition reaction, a nucleophilic substitution reaction, an electrophilic substitution reaction, or a condensation reaction: (a) The reaction of...
What is the difference between a Eurocredit, a Euronote, and a Euro-medium-term note?
What is the all-in cost of a 5-year loan? What are its main components?
What is a credit rating? What is a credit spread?
Frank is 82 years old.His wife died 5 years ago.He died and left the following assets: Principal residence 859,000 (individually owned: ACB 350,000) RRIF $235,000 (Beneficiary adult daughter ACB...
Assume that Pope Enterprises held a $10,000, 10 percent, six-month note signed by Mary Drew. On December, 1, 2015, the maturity date, Drew dishonored the note. At this point, Drew owes a total of...
5. Consider the shape shown on the following graph and the brute force method of solving the convex hull problem 2 -2 -1 0 a. Label all the points that will be provided to the algorithm as input. You...

In order for a derivatives market to function most efficiently, two types of economic agents are needed:

Question:

Step by Step Answer:

Two types of market participants are necessary for the efficient o...View the full answer

International Financial Management

Students also viewed these Finance questions