Any technique derived from choice-theoretic considerations implies a * (physical) commercial bills * commercial debentures, where these belong to a risk class equivalent to the other instruments * Forward Rate Agreements * swap agreements * spot and forward foreign exchange contracts 8 The techniques developed here can be applied with modifications to * bill futures contracts, because of the complications posed by the margins call requirement on such contracts * government and semi-government

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... nds and notes, which belong to a different (lower) risk class to commercial paper. The techniques developed here do not apply to * equity securities * options * other securities for which the cashflow cannot be well defined by an actor external to the issuing house. Note that this Project Report is theoretical in orientation and does not consider in detail the practical aspects of dealing in the above instruments. For instance deliverability, day mismatches, BBSW/physical bill spreads, and deposit and margin call requirements are not studied. While an important topic is the incorporation of " transaction costs and risk in the analysis, these considered in general terms rather than in the light of particular formulae for the assessment of, for instance, credit usage. The emphasis is on establishing general principles which may be applied in different situations.