Please note that if you edit your initial response (Original Post), you will not get credit for the Original Post. The discussions are set up as "Must post first". First, read the case Derivative in Disguise. Then answer the questions. In your initial response to the topic you have to answer all questions: What type of a derivative is the firm selling? What is the premium charged by the firm for these derivatives? Derivative traders always look out to grab arbitrage opportunities. Does the above scheme provide any hidden arbitrage opportunities? What are the potential risks to the firm once this scheme is launched? If there are any, how should the firm hedge its exposures? Reflection the students also should include a paragraph in the initial response in their own words, using finance terminology, reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace or in everyday life. Please also note that your answers should be written in your own words. Dont use quotes from the case. You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor. You must start a thread before you can read and reply to other threads