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1. A. If the pension fund you manage expects to have an inflow of $120 million six months from now, what forward contract would you
1. A. If the pension fund you manage expects to have an inflow of $120 million six months from now, what forward contract would you seek to enter into to lock in current interest rate? B. Suppose that the pension you are managing is expecting an inflow of funds of $100 million next year and you want to make sure that you will earn the current interest rate of 8% when you invest the incoming funds in the long-term bonds. How would you use the futures market to do this? C. How would you use the options market to accomplish the same things as in (B)? What are the advantages and disadvantages of using an options contract rather than a future contract
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