The treasure of a US-based multinational expects to deposit about £30 million in cash in May for a number of months, and is worried that short-term interest rates on sterling will soon fall. It is now December. Which of the following woud be an appropriate hedging transaction with futures? A) Sell June sterling futures B) Sell March sterling futures C) Buy March sterling futures D) Buy June sterling futures
The treasure of a US-based multinational expects to deposit about £30 million in cash in May for a number of months, and is worried that short-term interest rates on sterling will soon fall. It is now December. Which of the following woud be an appropriate hedging transaction with futures? A) Sell June sterling futures B) Sell March sterling futures C) Buy March sterling futures D) Buy June sterling futures
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The treasure of a US-based multinational expects to deposit about £30 million in cash in May for a number of months, and is worried that short-term interest rates on sterling will soon fall. It is now December. Which of the following woud be an appropriate hedging transaction with futures?
A) Sell June sterling futures
B) Sell March sterling futures
C) Buy March sterling futures
D) Buy June sterling futures
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