In December, a treasurer receives a notification of a RM20,000,000 borrowing requirement in March the following year. The loan will be needed for 6 months. By using strip hedging (combining March and June futures contracts), what is the best strategy that the treasurer should take? (Indicate the strategy & number of contracts).

Answer rating: 100% (QA)

To hedge the borrowing requirement using strip hedging with March and June fut... View the full answer