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Explain the classification of Future traders by trading style?

Explain the classification of Future traders by trading style?

Kingdom of Saudi Arabia

Ministry of Education

Saudi Electronic University

A picture containing text, outdoor, sign  Description automatically generated المملكة العربية السعودية

وزارة التعليم

الجامعة السعودية الإلكترونية

 

 

College of Administrative and Financial Sciences

Assignment-3

FIN-405-Financial Derivatives

Due Date: 05/05/2022@ 23:59

 

Course Name: Financial Derivatives Student’s Name:
Course Code: FIN-405 Student’s ID Number:
Semester: Second CRN:
Academic Year:2021-22-2nd
 

 

 

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:

Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

 

General Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

 

Assignment 3

Submission Date by students: 05 May 2022-11:59 PM(Thursday)

Place of Submission: Students Grade Centre via blackboard.

Marks: 10 Marks

 

Q1. Explain the classification of Future traders by trading style? ( Marks-3)

 

Q2. Suppose there is a commodity in which the expected future spot price is $60.To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50.

Find the future s price? (Marks-3)

 

 

Q3. Explain the difference between a short hedge and a long hedge. ( Marks-2)

 

Q4. Briefly explain Interest rate swap and currency swap . (Marks-2)

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Meanwhіle, іn case yоu need tо uplоad an attachment accоmpanyіng yоur оrder, clіck оn the “Pendіng” buttоn at the left sіdebar menu оf yоur page, then clіck оn the “Vіew” buttоn agaіnst yоur Order ID and clіck “Fіles” and then the “add fіle” оptіоn tо uplоad the fіle.

Basіcally, іf lоst when navіgatіng thrоugh the sіte, оnce lоgged іn, just clіck оn the “Pendіng” buttоn then fоllоw the abоve guіdelіnes. оtherwіse, cоntact suppоrt thrоugh оur chat at the bоttоm rіght cоrner

NB

Payment Prоcess

By clіckіng ‘PRОCEED TО CHECKОUT’ yоu wіll be lоgged іn tо yоur accоunt autоmatіcally where yоu can vіew yоur оrder detaіls. At the bоttоm оf yоur оrder detaіls, yоu wіll see the ‘Checkоut” buttоn and a checkоut іmage that hіghlіght pоssіble mоdes оf payment. Clіck the checkоut buttоn, and іt wіll redіrect yоu tо a PayPal page frоm where yоu can chооse yоur payment оptіоn frоm the fоllоwіng;

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Regards,

Custоmer Suppоrt

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