Toddster, you didn't answer or contradict anything. Do you write like that to sound like you are saying something important when you're really just typing out meaningless words? Yeah right, LOL, it's easy, not at all, etc...DO NOT CONSTITUTE A COUNTER-ARGUMENT.
All I did was point out a few of his obvious errors. And offer to answer the questions that he thought couldn't be answered. Your "professor" is a moron.
Just because you don't understand doesn't mean my words are useless. Why don't you explain how FR notes are backed by bonds? Why don't you explain how you can write derivatives for more than the value of the bonds in existence? Why don't you explain cash settlement?
Because you can't. LOL!