ESSENTIALS OF INVESTMENTS - CONNECT ACCE
ESSENTIALS OF INVESTMENTS - CONNECT ACCE
11th Edition
ISBN: 9781266077951
Author: Bodie
Publisher: INTER MCG
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Chapter 17.4, Problem 2EQ
Summary Introduction

To think critically about:

The relationship between income yield and time spread is to be explained. The impact of increase in income yield over the time-spread is to be determined.

Introduction:

Time spread is the hedging technique. It involves simultaneously buying and selling the contract of same underlying stock at similar price with different maturity period. It means investor is purchasing a contract of long - maturity and selling the contract of short- maturity.

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