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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.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 we have futures contracts on Treasury bonds but we do not have that on individual corporate bonds?
- 4.What risks are associated with hedging?
- 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.What is your understanding of LIBOR?
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