The FI would like to hedge against this interest rate forecast with an appropriate position in a

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The FI would like to hedge against this interest rate forecast with an appropriate position in a forward contract. What will this position be? Show that if rates rise by 1 percent as forecast, the hedge will protect the FI from loss. (LG 23-2)

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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