Financial Markets and Institutions (2-downloads)

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Please visit our Web site at 

www.pearsonhighered

.com/mishkin_eakins

to read the Web appendix to 

Chapter 24:

• Appendix: More on Hedging with Financial Derivatives

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Hedging with Financial Derivatives

1. We have discussed the various stock markets in detail

throughout this text. Another market that is less well

known is the New York Mercantile Exchange. Here,

contracts on a wide variety of commodities are traded

on a daily basis. Go to 

www.nymex.com/aindex.aspx

and read the discussion explaining the origin and pur-

pose of the mercantile exchange. Write a one-page

summary discussing this material.

2. The following site can be used to demonstrate how

the features of an option affect the option’s prices. Go

to