Research Paper-Defend the current utilization of futures contracts for financial institutions.
1. Defend the current utilization of futures contracts for financial institutions. If needed, please feel free to provide a numerical example to clarify your response.
2. Support the incorporation of option securities for financial institutions. If needed, please feel free to provide a numerical example to clarify your discussion.
3. Identify the positives and negatives of derivatives and how could employ derivatives?
4. Provide examples of derivatives in real-world situations and their impact.
5. Describe how the value of a derivative is determined. Compare the Black-Schocles option pricing model to the binomial option pricing
model.
