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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Principles Of Financial Engineering

ISBN: 9780123869685

3rd Edition

Authors: Robert Kosowski, Salih N. Neftci

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