4 questions, 1 paragraph each required. No cut and paste

1. Mortgage-Backed securities are often blamed for the 2008 Financial Crises. They are derivative securities, hence their value is based on the underlying security, in this case mortgages. Should the main blame for the crisis be placed on the derivative, or its underlying security? 2. Are stock options better for the company, or the employee? 3. What are the key practical differences between a Forward contract and a Future contract? Why are Futures much more common? When are Forwards more useful? 4. We learned that unsystematic risk is of little concern to stockholders who wisely diversify. But what is the role of unsystematic risk of a stock in valuing call options on the stock