Question

QUESTION 1

Please, first, do some self-learning, and then write an essay to give me some education. Below are some directions which might help.

1. What is Fintech? What are the popular Fintechs concepts, e.g., blockchain, cryptocurrency, crowd funding, what else? Can you give some examples on how they work? (1 mark)
2. How Fintech change our lifes? Who are going the impacted? When an extreme event happens, such as COVID-19, how Fintech will help? (1 mark)
3. What are the personality, knowledge background, technical skills required, etc, for those who work in the traditional financial industry and for those who work in the Fintech financial industry? (1 mark)
4. Do Fintech companies have any social responsibilities? (1 mark)
5. Why is this fintech revolution happening now, not 50 years ago, not 50 years later? (1 mark)
6. How big data supports Fintech credit scoring? Will that raise any ethical problems? Any law enforcement on that? (1 mark)
7. Comparing the emerging of derivatives innovations decade years ago and Fintech, are there any similarities, dissimilarities? Do you think Fintech will replace derivatives’ role, or it will complete derivatives’ role? (1 mark)
8. More questions asked by yourself and answered by yourself.

The essay should be less than 5000 words including references. The font is Times New Roman, size 12pt, 1.5 line space.

QUESTION 2

Please search case study “Orange County Bankruptcy” in Google. First, do some self-learning, and then write an essay to give me some directions on:

9. Who is Robert Citron? (1 mark)
10. What was the Orange County Governance Structure? (1 mark)
11. What was the political and economic background before the bankruptcy? (1 mark)
12. What was the Orange County Investment Pool and balance sheet (1994)? (1 mark)
13. What was Citrons Strategy? (1 mark)
14. How the Fed action affects the interest rate in 1994? (1 mark)
15. Describe the crisis following the Fed action. (1 mark)
16. Describe the outcomes. (1 mark)
17. Finally what are the lessons to learn? (1 mark)
18. Please list all the references. (1 mark)

The essay should be less than 5000 words including references. The font is Times New Roman, size 12pt, 1.5 line space.

QUESTION 7A

Please prove call option and put option with the same maturity are having exactly the same option premium, if their strike prices are the same and are forward price.

Answer 1

1.Financial technology, also known as fintech.It is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services.Some of the exapmles of Fintech including blockchain ,crypto currency,crowd funding

• Mobile payments Apps

   The global mobile payment market is on track to surpass $1 trillion in 2019. Using increasingly sophisticated technology, services have emerged that allow consumers to exchange money and payments online or on mobile devices - including popular payment app Venmo. Apple (AAPL) - Get Report and Alibaba (BABA) - Get Report got in on the mobile payment business with Apple Pay or Alipay.

• Robo Advising and Stock trading Apps
    Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs.Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services - including the likes of Charles Schwab (SCHW) - Get Report and Vanguard.
• Budgeting Apps

One of the most common uses of fintech in 2019 is budgeting apps for consumers, which have grown exponentially in popularity over the years.Before, consumers had to create their own budgets, x`gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money.Budgeting apps like Intuit's (INTU) - Get Report Mint help consumers track their income, monthly payments, expenditures and more - all on their mobile device.

2.

Ever since fintech became a point of interest for investors in 2014, people have been speculating about the disruption that this phenomena will bring to individuals and businesses. As with any new trend, expectations began to rise as fintech startups started to form, to the point where futuristic scenarios were advanced to keep the trend going.But the reality is not quite as extravagant as those 2014 predictions indicated, nor as bleak as doubters initially thought. For fintech startups, it's proving extremely difficult to manage growth expectations that come with a tech startup, in combination with the slow pace of a financial company's development. Consumers are also divided; while some love the idea of having a tech solution for everything including banking and insurance management, others are confused by all the new possibilities they're presented with and choose to stay with the bank they already know and trust

3.

Skills required for working in financial market programing skills like Java, C++,SQL,Python.Highly skilled software engineers required.

4

Yes , fintech companies have social responsibilities.The importance of social responsibility for FinTech is intimately connected to the relationship between their audience – a new generation spanning millennials in their twenties and early thirties, and the students that will succeed them- aligned with their social conscience. This is a generation that has grown up with an awareness of issues for sustainability, social responsibility and the desire to make consumer decisions based on values. As a result, it is essential for FinTech companies to align themselves with their socially responsible audience.

5.

Fintech is beginning to disrupt the financial world as we know it. The financial industry is now more focused than ever on technological innovation than at any other time.It’s about major changes to asset management, business and personal loans, fund raising, money transfers, and the way we invest. Fintech involves disrupting the way all businesses operate, as well as our personal finances.