Derivatives Homework Assignment

Grootman

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Greetings

I'm an Econ university student from Nelson Mandela University. I've got an assignment and need some assistance with a couple of questions relating to CFDs

A few tips regarding the technicalities that will be accessed –

Questions surrounding both the SA and global marketsWhat effects the markets?Assess understanding of financial marketsHow the markets behaveWhat influences stock pricesUS markets

1. There is a game where you* have an equal chance of winning 100 and losing 50. Your*payout will be determined by your skill level and performance in the game. I am the one who is offering this game. What price should I charge people to play it?

2. What inputs do you believe we consider before putting together our CFD offering?

3. Our most popular products are our “Cash” indices. How are we able to offer a cash contract for our clients to trade?

4. What factors are used in determining a forward price on a currency*pair. How are these factors used to determine this price? When would you trade this product?

5. If you are long a call and short a put with the same strike*price*and same expiry, what product profile do you have?

Thanks for your help guys.
 
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