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What are the examples of uses of derivatives in economics?
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- Give some reason for the growth of derivatives worldwide. Enumerate different types of derivatives.Do the financial institutions usually quote the interest rate on an annual basis?s there any over-the-counter market of stocks/bonds/derivatives in Pakistan? If yes, then explain its features in detail.
- Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed rate of interest?Mortgage lenders often resell mortgages in secondary markets. How might this make lenders act differently than if they intended to hold the mortgages themselves?Why do loan sharks worry less about moral hazard in connection with their borrowers than some other lenders do?