In the middle of next year, XYZ Ltd will look to invest $10m in the debt market.
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Question:
In the middle of next year, XYZ Ltd will look to invest $10m in the debt market. They will be looking at bills but are worried that the interest rates might change by next year. Explain to XYZ Ltd how to use futures to overcome their fears concerning interest rate changes. (You can use calculations to explain this question if necessary.)
One of the directors for XYZ Ltd asks why they will not consider options as a strategy instead of futures. Explain how this could be done and how options and futures could be used.
Related Book For
Business Ethics A Stakeholder And Issues Management Approach
ISBN: 9781523091546
7th Edition
Authors: Joseph W. Weiss
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