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6. Forward and futures contracts A Aa The derivatives markets contain different types of contradts. Forward contradts, futures contracts, options, and swaps are some common

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6. Forward and futures contracts A Aa The derivatives markets contain different types of contradts. Forward contradts, futures contracts, options, and swaps are some common types of derivatives contracts. are customized agreements in which one party agrees to buy a commodity at aspecific price on a spedific future date, and the other party agrees to maite the sale. Typicaly, goods ane actually dalivwernd under these contracts. Which of the following are used to hedge against fluctuating interest rates, stock prices, and exchange rates? ates,stock prices, and exchange rates? O financial futures ?commodity futures tolbotics inc is planning to build a new production facility that wil cost sio million. tt plians to finance this projedt with 10-year bonds that would carry 7% interest rate if they were issued today However, the company does not need the money for six months which of the toilowing actions wouid hedge Tolbotics Inc egainst an increase in inberest rates? 0 Take along position in internstate futures ? Takeolong position in foreign eighangn futures O Take a short position in forsigftf exchange futums O Tbkea short position in interest tait??turww rorward and futures currency cont acts reflect anenti ation to either buy or sel currency atfuture date, whereas options are contracts traded betwen buvers to buy or well a specific (undertying especfic arice caled the expiration date and sellers that ove the sotion holder the rght, but not the obligation, erose or strike price, os or before an allows you vtime ot or Sefore the expiration cate

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