1. Suppose you are a newly employed investment banker and you find that your bank got stuck...
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1. Suppose you are a newly employed investment banker and you find that your bank got stuck in a deal where it has to deliver a bond to close a short future position. The bond has just gone “special” and you do not own it yet. What strategy do you suggest to address this situation and avoid a heavy penalty in case of failure to deliver?
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Related Book For
Principles Of Financial Engineering
ISBN: 9780123869685
3rd Edition
Authors: Robert Kosowski, Salih N. Neftci
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