If a bank has assets of $100 million and liabilities of $95 million, what is its net worth? If 60 percent of its assets were loans, what percentage of the loans could go sour before the bank would...

If a bank has assets of $100 million and liabilities of $95 million, what is its net worth? If 60 percent of its assets were loans, what percentage of the loans could go sour before the bank would lose all of its capital?

Defi ne derivatives. Why can they be risky?