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      该报告旨在为鲍凯斯财富经理提供套期保值可以盖利率的暴露风险的最佳建议。首先，对衍生品交易相关的风险进行了简要说明，分为宏观和微观风险。根据给定的数据，它产生的现金流的数值分析结果下两种不同的策略：期货或期权。期权策略建议在这里阐述的原因。同时，真正的市场数据被用于这两种策略下的损耗和增益的鲍凯斯检查。

      Given the scenario provided, the report aims to provide optimal suggestions for the treasure manager of Boakes to convince the senior manager that hedging can cover the exposed risk of interest rate. Firstly, the risks related to trading derivatives are briefly explained, classified as macro risks and micro risks. According finance to the given data, it generates the numerical analysis on the cash flow results under two different strategies: futures or options. The options strategy is recommend here with well elaborated reasons. Also, the real market data are used to examine the loss and gain of Boakes under these two strategies.

      交换及其效益鲍凯斯机制的证明。此外，互换安排是专为鲍凯斯的好处包括费用节约资金的说明。最后，报告描述的风险可能面对今天的互换安排。
      In Problem2, the Boakes will need a currency swap for the foreign acquisition. The mechanism of swap and its benefit to Boakes are demonstrated. Moreover, a SWAP arrangement is designed for Boakes and the benefits including saved costs on funding are illustrated. Eventually, the reports describe the risks might confront for today’s SWAP arrangement.

      a. Briefly explain the risks associated with the use of derivatives to hedge interest rate risk.
The interest future and option is generated for the banks and enterprises to hedge interest rate risk, decreasing costs of loan and cover the risk of interest sensitive assets. The use of derivatives will be exposed to financial risks which are undesirable changes in the value of derivative instruments. Dividing risks into two types: macro risks and micro risks. Macro risks indicate to risks commonly found in the whole types of derivatives, including equity market risk, currency risk and interest rate risk. These risks are referred as systematic risk or market risk. Another form of macro risk is systemic risk. That is, when one market participant defaults, many participants suffer due to the interrelationship between the participants.
Micro risks refer to specific risks to a particular financial instrument or counterparty, which also regarded as unsystematic risk. Micro risks include: default risk, legal risk, operational risk, and model risk.
Default risk: the risk that counterparty defaults on the contract including the risk of insufficient collateral if relied on.
      Legal risk: if the contract or agreement is not enforceable, the participants are exposed to legal risk.
Operational risk: the shortcoming in operation may cause loss in hedging. For instant, wrong deal contract, lack of confirmation between counterparties might result in misperception about trading the same side of a deal or different principals. Or a computer failure might cause a disruption in hedge as usual.
Model risk: If the organization gets wrong values or prices of complex derivatives from the model, the organization will be suffered from losses.
      In addition, there are one specific risk to option, namely volatility risk and correlation risk.
Volatility risk: the risk of loss in values of assets due to the uncertainty of future prices of the underlying asset at本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。