A Canadian company wishes to create a Canadian LIBOR futures contract from a U.S. Eurodollar futures contract
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A Canadian company wishes to create a Canadian LIBOR futures contract from a U.S. Eurodollar futures contract and forward contracts on foreign exchange. Using an example, explain how the company should proceed. For the purposes of this problem, assume that a futures contract is the same as a forward contract.
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The US Eurodollar futures contract maturing at time enables an investor to lock in the forwar...View the full answer
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