Part 1: Respond to the follow discussion:
*** 100 + WORDS ***
Part 2: Respond the following classmate’s discussion:
“Interest rate caps and floors are options like contracts, which are customized and negotiated by two parties. Caps and floors are based on interest rates and have multiple settlement dates. An investment in a derivative using an interest rate cap or floor requires the buyer to pay a premium to purchase the option, so the buyer faces some form of credit risk. An interest rate cap protects the buyer from interest rates rising above the strike rate. Floors set a minimum interest rate payment because if interest rates fall below the strike rate, the floor holder is protected. In assessing the volatility risk with an investment in a derivative using an interest rate cap or floor in today’s marketplace, because of the high volatility with an investment in a derivative, having some form of protection is an excellent way to hedge one’s investment. Still, with all investments and markets, there are no guarantees or certainty. As an investor, I would want to use these techniques to limit exposure to changes in market interest rates. I believe it’s a good idea.
Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option. The Black-Scholes pricing model is largely used by options traders who buy options that are priced under the formula calculated value and sell options that are priced higher than the Black-Scholes computed value. The Black-Scholes model is useful because it is like the value of interest-rate cap/floor investments. This model uses factors and formulas that are based on assumed variables but may not translate to real-world marketplace scenarios. Factors will change throughout the market cycle, and they will never be predictable, which is one flaw with using this model. To minimize pitfalls with this method, investors must monitor market volatility changes, and other market developments. Overall, the Black-Sholes pricing model is another investment technique that is effective and accurate.”
*** 40+ WORDS ***
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.