Q2. Suppose there is a commodity in which the expected future spot price is $60.To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50.
Find the future s price? (Marks-3)
Q3. Explain the difference between a short hedge and a long hedge. ( Marks-2)
Q4. Briefly explain Interest rate swap and currency swap . (Marks-2)
