a) Should the firm use a short hedge or a long hedge? borrowing b) If the...
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a) Should the firm use a short hedge or a long hedge? borrowing b) If the position is closed at the end of the day what is the firm's holding period return on the futures contract? c) At what price would the corporate investor receive a margin call? Put your answer in 32nds and round to the nearest 32nd. 108 109 C-7 6 points 110 111 112 113 114 115 116 117 118 119 120 121 b) 122 123 124 125 126 127 c) 128 129 130 131 132 133 134 135 136 137 138 139 140 one T-bond a) Should the firm use a short hedge or a long hedge? borrowing b) If the position is closed at the end of the day what is the firm's holding period return on the futures contract? c) At what price would the corporate investor receive a margin call? Put your answer in 32nds and round to the nearest 32nd. 108 109 C-7 6 points 110 111 112 113 114 115 116 117 118 119 120 121 b) 122 123 124 125 126 127 c) 128 129 130 131 132 133 134 135 136 137 138 139 140 one T-bond
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