Why is writing deep-in-the-money currency options tantamount to short-term financing?

How might thetreasurer of a multinational firm use the interest rate parity concept (a) when deciding howto invest the firm’s surplus cash and (b) whendeciding where to borrow funds on a short-termbasis?

Why do most firms use a market interest rate?

What is the traditional cash equivalency approach used to determine how below-market-rate loans affect value?

How is a credit default swap like insurance?

If a bank wants to shorten its asset duration, what type of risk is the bank concerned about?  Group of answer choices Off balance sheet risk. The risk of rising interest rates. The risk of falling interest rates. Foreign exchange rate risk.

How can a company offset risk using interest rate swaps?

What is the difference (How to invest?) between Money Market, Bond Market, Equity Market, Foreign Exchange Market and Derivatives Market?

1) What id the essential purpose for financial markets? 2) Which is more important, the primary market for stocks of the secondary market? Why? 3) How does a ponzi scheme work? 4) Discuss some of the forces that help make markets efficient? 5) What are institutional investors? Why are they needed in our economy? 6) What are some of the differences between a forward contract and a future contract?

What kind of interest rate swap would a commercial bank with a negative re - pricing gap (that is, rate sensitive assets is less than rate sensitive liabilities) utilize to hedge rate risk exposure (that is, would the commercial bank enter into an interest rate swap to make floating rate payments and receive fixed rate payments)? Explain