Economics Homework Help

Attention – this project, even though it is not long, it requires extensive financial knowledge. Superficial papers which do not include all the information can not be accepted.

Please submit this week a report that describes your hypotheses and trades in detail (a link is provided below the project description through which you should submit Deliverable 1). Make sure that your plan is as realistic as possible, and incorporates all premiums and margin/collateral requirements. For each hypothesis, please develop an exchange-traded derivatives trade that can monetize the view. Hence, derivatives that do not trade on exchanges, such as forwards, credit default swaps, or interest rate swaps, should not be used. Only use derivatives – do not use any cash products such as stocks or bonds.
 

Please assume that you have up to 1,000,000 to allocate to each asset class (for the purpose of premiums and/or margin).
 

Please assume that you will acquire the position sometime during this week and will hold it until sometime during the week of Module 12. Please do not develop dynamic strategies that require buying or selling between this week and the week of Module 12. So there will only be two relevant dates:

• The date you enter the      position, sometime this week.
• The date you close out the      position, sometime during the week of Module 12.