It is said that a microhedge does not totally eliminate risk. Assume that a bank uses financial

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It is said that a microhedge does not totally eliminate risk. Assume that a bank uses financial futures contracts to reduce the risk of rising rates on new borrowings. Identify what type of position the bank should take to hedge. Once a hedge is in place, what risks remain?
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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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