Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance (https://www.askmehelpdesk.com/forumdisplay.php?f=125)
-   -   Hedging against 2% interest rate increase (https://www.askmehelpdesk.com/showthread.php?t=530197)

  • Nov 29, 2010, 07:47 PM
    igotafeva
    Hedging against 2% interest rate increase
    In order to hedge against the possible rate increase described in part e, Midland
    Decides to hedge its position in the futures market. Assume it sells $500,000
    Worth of 12-month futures contracts on Treasury bonds. One year later, interest
    Rates go up 2 percent across the board and the Treasury bond futures have gone
    Down to $488,000.

  • All times are GMT -7. The time now is 07:03 AM.