Free 8009 Questions Attempt

Backwardation

Contango

Reverse backwardation

Conchacha

made it straightforward for TFMI to determine whether risk had actually been transferred and they decided not to take out more catastrophe insurance cover

made it difficult for TFMI to determine whether risk had actually been transferred so they had to take out additional catastrophe insurance cover

made it straightforward for TFMI to determine when the risk had been transferred and to take out additional catastrophe insurance cover

made it difficult for TFMI to determine whether risk had actually been transferred and whether it had sufficient catastrophe insurance cover

selling short-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling long-term options with extremely low-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling short-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

selling long-term options with extremely high-risk profiles to generate premiums to cover the cost of closing out loss-making option positions

The role of the UK government and the possible underwriting of risks by tax-payers, and the general question of Moral Hazard

The reform of the Deposit Protection Scheme because of its internal inconsistencies

It emphasised the importance of effective governance arrangements within financial firms

The original successful business model had not stress tested sufficiently for the incidence of Low Probability, High Impact incidents