Explain who the counterparty is to a risk management derivatives contract that an insurance company would engage in and what his or her motives are to engage in the derivatives contract
What will be an ideal response?
The counterparty to the derivatives contract is likely a speculator who has a different prediction about future price movements compared to the insurance company. Hence they are willing to take a risk and will charge a fee for taking this risk.
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Indicate whether the statement is true or false
If you must deliver bad news, determine ________ to help you choose the direct or indirect approach for delivering the message
A) how much you care about the audience B) how important the news is to the reader C) your writing style preferences D) how much time is available to develop a message E) if a strong buffer can be developed