Question: 1. Why does Warren Buffett say that Wall Streets rocket scientists give financial derivatives a bad name? 2. Explain how futures contracts are risk-management tools?

1. Why does Warren Buffett say that Wall Street’s “rocket scientists” give financial derivatives a bad name?

2. Explain how futures contracts are risk-management tools?

3. What career choices and company choices are available to someone who wants to work with futures contracts? What types of courses would be appropriate to develop the knowledge and skills needed in these jobs? (Hint: Consult career information on the Internet or through your university’s Career Placement Services.

Step by Step Solution

★★★★★

3.42 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Warren Buffet says You dont need to be a rocket scientist Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ Think ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Figure G-5 is a topographic map. Points A, B, and C are outcrop points of the upper surface of a planar coal seam. Point Z is an outcrop point of the base of the coal seam. 1. Determine the attitude...

Explain how futures contracts are valued daily and how most contracts are settled.

What types of skills and knowledge are needed by professionals entering the external auditing profession?

Futures and forward currency contracts are not readily available for all currencies. However, many currencies are closely linked. For example, many European countries, which are not part of the euro,...

They are financial weapons of mass destruction, Warren Buffett wrote in his popular annual Berkshire Hathaway Letter from the Chairman, in 2003. Mr. Buffett was referring to financial derivatives....

CHAP TER 1 The Role of Human Resources HUMAN RESOURCE MANAGEMENT DAY TO DAY You have just been hired to work in the human resource department of a small company. You heard about the job through a...

Why is it important for us to understand how the global system of financial institutions and markets works? ros57395_ch01.qxd 12/21/04 2:45 PM Page 1 Part 1 The Global Financial System in Perspective...

Topic: Conducting personal job interviews using the star model 1-Design a two-hour training work plan for 10 trainees 2-Determine the quality of trainees 3-Use the training design model Formulate one...

I hope you can answer this question and find the reference below the question. Thank you Topic: Conducting personal job interviews using the STAR model 1- Design a two-hour training work plan for 10...

Theme one is about the greatest skill a leader can possess that is the art of communication. This week's theme is to discuss the importance of communication which at its heart is the art of...

THIS QUESTION IS DUE IN EXACTLY 1 HOUR AND 45 MINUTES. I WILL PAY EXTRA 10 DOLLARS IN TIP IF SOMEONE TYPES THE EXACT ANSWER REQUESTED. PLEASE RESPOND TO THE EACH AND EVERY QUESTION IN A TOTAL OF 3-4...

Intan has the following information for its first year of operations: Units produced Units sold Unit sales price Direct material per unit Direct labor per unit 3,600 3,600 RM 200.00 RM 60.00 RM 30.00...

What is homoplasy and why does it create problems for molecular phylogenetic analyses?

As inventories of a commodity decline we would expect: A. the ratio of one-year futures price to the spot price to behave randomly B. the ratio of one-year futures price to the spot price to remain...

A section of highway has a speed-flow relationship of the form "q = au^2 + bu" It is known that at capacity (which is 2900 veh/h) the space-mean speed of traffic is 50 km/h. Determine the speed when...

The instruction booklet for your pressure cooker indicates that its highest setting is 12.2 psi . You know that standard atmospheric pressure is 14.7 psi, so the booklet must mean 12.2 psi above...

my company is on Apple. Objective: To analyze the financial statements of a publicly traded company Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the...

4. Let a = (-5, 3,-2), and consider the linear transformation: E : P R. Compute Ea(7x 4x + 3x 6) Find a basis for ker(Ea). Hint: think of a factored form for p(x) if E(p(x)) = z(x). . b.

CAPM Netflix common stock has a beta, B, of 0.8. The risk-free rate is 3%, and the market return is 10%. a. Determine the risk premium on Netflix common stock. b. Determine the required return that...

Heights of 10 year olds, regardless of gender, closely follow a normal distribution with the mean 55 inches and standard deviation 6 inches. What is the probability that a randomly chosen 10 year old...

Research and Case Analysis No. 1 (10%) on Warren Buffett and Berkshire Hathaway Inc.: Part A on the 2001 videotaped presentation of Warren Buffett, uploaded on YouTube, the link to which is indicated...

Some help and explanation will be great Question 4 18 points Save Answer (18 points) Management proposes a plan to lower the interest burden for Five Brothers. Five Brothers has one debt investor,...

please read the following case study and answer the questions below: please give as much information as you can and answer in paragraphs!!! there is no word limit so give as much information as you...

Management proposes a plan to lower the interest burden for Five Brothers. Five Brothers has one debt investor, Warren Buffett. The proposal to Warren Buffett is to lower the coupon payments of Five...

please read the following case study and give a summary of what you have read: please give as much information as you can and answer in paragraphs!!! there is no word limit! 1. Introduction Warren...

After reading the the below article. Can I get help with the question following: Insurance companies are absorbing those real dollar claims while trying to figure out how much of this automation and...