Complete the Week Two Homework assignments listed below and submit your solutions in a single document. Be sure to use references and document your sources using proper APA style.
Why are most futures positions closed out through a reversing trade rather than held to delivery?
Generally, it is not possible to completely eliminate both translation exposure and transaction exposure. In some cases, the elimination of one exposure will also eliminate the other. But in other cases, the elimination of one exposure actually creates the other. Discuss which exposure might be viewed as the most important to effectively manage, if a conflict between controlling both arises. Also, discuss and critique the common methods for controlling translation exposure.
Briefly discuss some of the services that international banks provide their customers and the market place.
Describe the differences between foreign bonds and Eurobonds. Also discuss why Eurobonds make up the lion’s share of the international bond market.