(a) How do companies use financial derivatives to manage some of their risks?
(b) Identify several types of derivatives.
(c) Why use an options contract rather than a forward contract?
(d) Why let a put option expire; why exercise a call option?
(e) Are swap agreements traded internationally? If so, then provide an example.

2. Problem-solving: Identify and describe two financial management practices that firms use to manage each of the following:

1a. Companies could use derivative as an insurance (hedging) purpose. For example: a US energy company would hedge the uncertainty of the profit they will receive from overseas by entering currency forward agreements to limit losses due to uncertainty in the exchange rate between two currencies.

b. Futures, Interest and currency swap, Options, Forward, warrants.

c. Options contract will give you a right to purchase/sell the underlying assets at certain price; forward contract will give you an obligation to purchase/sell the underlying assets at certain price that has been ...

Solve the following two equations. In each case, determine dy/dx:
a.)y=xcos(2x^2)
Is this right? y'=x(-sin)(2x^2)(4x)
=-4x^2sin(2x^2)
b.)y=xe^-x^2
Is this right? y'=-xe^-x^2+1(e^-x)
=-xe^-x^2+e^-x

1. Find the derivatives for the following functions ("^" means "to the power of", sorry I can't do double exponents on my keyboard) :
a. f(X) = 100e10X
b. f(X) = e(10X-5)
c. f(X) = e^X3
d. f(X) = 2X2e^(1- X2)
e. f(X) = 5Xe(12- 2X)
f. f(X) = 100e^(X3 + X4)
g. f(X) = e^(200X - X2 + X100)
2. Fi

The megabanks hold a total of about $210 trillion dollars in derivatives, nearly all of which are not traded on transparent exchanges but instead are traded over the counter (OTC). Zero Hedge recently posted an illuminating blog entry on the business of derivatives trading and profit manipulation at the banks. According to Zero

a) Are all derivatives held at fair value on the balance sheet or are there some exceptions?
b) Following is the link to an article from 2007 related to the use of derivatives by Southwest Airlines at a time when fuel prices were rising significantly. This article discusses how these derivatives's value to their income fell a

8) The acceleration at time t, of a particle moving along the x axis is given by a(t)=20t^3+6. At time t=0 the velocity of the particle is 0 and the position of the particle is 7. What is the position of the particle at time t?
12) The function f is given by f(x)=3x^2+1. What is the average value os f over the closed inte