Notice that if rates move in an opposite direction from that expected, losses are incurred on the

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Notice that if rates move in an opposite direction from that expected, losses are incurred on the futures position. That is, if rates rise and futures prices drop, the long investor loses on his or her futures position. Similarly, if rates fall and futures prices rise, the short investor loses on his or her futures position. LO.1

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Financial Markets And Institutions

ISBN: 9781259919718

7th Edition

Authors: Anthony Saunders, Marcia Cornett

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