You have been assigned your first product development job. You are to develop a derivative...

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Finance

You have been assigned your first product development job. You are to develop a derivative product (futures or options) that Malaysia needs. It will be a commodity derivative. You have to write a proposal (to the exchange and the Securities Commission) with the following information:

1) Justify the need for this product for future development of the capital market.

2) Draft the contract specifications (justify your reasons).

3) Justify your proposal with anticipatory hedge and physical hedge examples.

4) Calculate the fair value of your new derivative contract.

5) Make sure it complies with all the rules and regulations of the exchange and Securities Commission.

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