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1.What is the difference between forward and futures contracts? 2.How can Eurodollar futures used by large corporations? How the Eurodollar futures contract works. 3.Why do

  1. 1.What is the difference between forward and futures contracts?
  2. 2.How can Eurodollar futures used by large corporations? How the Eurodollar futures contract works.
  3. 3.Why do we have futures contracts on Treasury bonds but we do not have that on individual corporate bonds?
  4. 4.What risks are associated with hedging?
  5. 5.Assume that a manager wants to reduce the duration of a portfolio. Explain how this can be done using Treasury bond futures contracts.
  6. 6.What is your understanding of LIBOR?

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