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case studies case study and need an explanation and answer to help me learn. Your last case analysis centered around financing additional operations and acquisitions forNorcorp using "traditional" financing tools such as straight common equity and straight corporate debt. Yet, as you may have read, there are many other types of financing available to large corporations that can augment traditional capital stacks. Some of the options include lease financing, preferred stock financing, convertible debt, among others.Based on your reading of Chapters 19 & 20, prepare an Executive Summary discussing the various pros, cons, and tradeoffs among the "hybrid" sources of financing both in an absolute sense as well as relative to traditional (read: debt and equity) sources. Like in the prior case, you should pay particular attention to issues of control, risk (financial,operational, mission, etc.), and sustainability. This should be done from the perspective of (primarily), Norcorp itself but, also,from the perspective of the investors in Norcorp's pending financing issue.Finally, while not traditionally a stand-alone source of financing,equity warrants can help"enhance' the financing effort. Your summary should include recommendations on how Norcorp Could use warrants to achieve their financing (both hybrid and traditional) needs. Questions that need to be answered: 1 . Question at hand: 5-8 sentences 2 . Information given: 12-15 sentences 3 . Assumptions: 12-15 sentences 4 . Concepts: 12-15 sentences Requirements: 12-15 sentences for the last 3 question listed above. The first question need to be 5-8 sentences. Ch 201.Question on Hand:Different underlying-to-derivative price connections into different categories. includes astructured product or note with non-linear and/or threshold relationships as well asdescriptions of the risk/return impacts of each relationship classification. classifies thenon-linear and/or threshold relationship(s) of that structure product/note in accordancewith any applicable underlying-to-derivative pricing relationships. explains thecircumstances in which a wealth manager's recommendation of a structured product ornote to an investor may be beneficial or detrimental.2.Information Given:You have been given the responsibility of advising your company on a potential FinTechacquisition that may have a significant impact on its wealth management services as thevice president of portfolio management.The FinTech company that is being considered for purchase, in particular, creates"structured products" or "structured notes" that typically combine one or more fixedincome securities with one or more financial derivative instruments. These structuredproducts stand out due to their ability to precisely match the payback (or profit) scheduleof the product to an underlying reference series (the S&P 500). Structured products maytherefore have non-linear, leveraged (or de-leveraged), inverse (or positive), and/orthreshold based value impacts, relative to the reference asset, just like derivativeproducts, but unlike simple equity securities.3.Assumptions:The prize is greater than the risk since structured products often offer some form ofcapital preservation. Structured investments might vary depending on the investor'spreferences. Depending on the appropriate circumstance, completely reduce danger. Weought to have a closer look in order to gain a better understanding. items with structure.Which is a multiple-securities-based investment approach, a commodities, debt issuance,foreign currencies, indexes, a basket of assets, or derivatives, sometimes known as astructured product or a market-linked security investment. Structured Products aren'talways the best solution when it comes to this subject. These pose far too much risk forthe average investor. One of these risks is a significant or complete principal loss.variation in the worth, performance, or return of the underlying assets.4.Concepts:With the Information provided there are numerous dangers associated with being the VPof portfolio management and assigned the responsibility of FinTech acquisition.These come from structured notes or products that are linked to underlying assets, much likederivatives. Contrary to derivatives, which are not backed by these asset pools, thesestructured products are linked to the underlying reference series, such as the Nasdaq.These items carry the same dangers as those discussed in earlier chapters, but variousproducts carry different risks.depending on the volatility market conditions and asset poolthese are linked to.5.Calculations:There are many equations that we can use, but the things that we care about are thepayoff of a call option, and the payoff of a put option. For each kind of contract, there area few possible computations we can make. Using this equation, we can determine thepayment of a forward contract. Cfw:= ST – KWe can find the payoff of a call option by Ccall = ST - K if ST > K, otherwise 0We can find the payoff of a put option by Cput = K - ST if ST < K, otherwise 0These are the most important equations to use in this case.6.Interpretations:As the VP of portfolio management and being tasked with FinTech acquisition there aremany risks involved. These are from structured products or structured notes which aretied to underlying assets similar to derivatives. Unlike derivatives these structuredproducts are tied to underlying reference series such as the Nasdaq when derivatives arenot backed by these asset pools. The risks that come with these products are similar tothose in previous chapters as such different products come with different risks.Depending on the market conditions, volatility and which asset pool these are tied to.These nonlinear structured products/notes come with increased risks. By that I mean forexample the more in the money your contract gets the quicker you gain returns. Thefarther out the money it gets the quicker you begin to lose money. So the risk for thetypical investor here is increasingly high and would not be served well in purchasingthese non-linear derivatives. While a linear contract has a set expiration date or pay offdate depending on type of contract. While these still have a higher risk than othersecurities they are safer than non-linear.7.Implications and Consequences:There are some risks or consequences that come with the strategy we are implementing.To get a better understanding we should take a closer look into structured products.Which is an investment strategy based on multiple securities, a basket of securities,options, indices, commodities, debt issuance, foreign currencies, or derivatives, commonly referred to as a structured product or market-linked investment. StructuredProducts are sometimes not the most viable option in regards to this matter. The fact isthat they are considerably too hazardous for the typical investor. Significant or fullprincipal loss is one of these hazards. Fluctuations in the value, level, or return of theunderlying assets. However in this case the reward outweighs the risk because themajority of the time, structured products provide some kind of capital protection. Basedon the investor's choices, structured investments can fully reduce risk depending on thecorrect situation.