Financial institutions have found themselves in short-run financial liquidity problems because of overexposure in the futures markets.

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Financial institutions have found themselves in short-run financial liquidity problems because of overexposure in the futures markets. Explain how this could happen if you took a “long position” in a foreign currency or a “long hedge” in a eurodollar deposit or CD.
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International Economics

ISBN: 9780078021671

8th Edition

Authors: Dennis Appleyard, Alfred Field

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