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7. The case mentions that BSB seeks to eliminate its exposure to risk by buying and/or selling financial futures contracts. In using these derivative financial
7. The case mentions that BSB seeks to eliminate its exposure to risk by buying and/or selling financial futures contracts. In using these derivative financial securities, does the bank eliminate all of its exposure to risk, or just a portion of the total risk the firm faces? Does the introduction of financial futures within the bank create any additional risks for management to consider? If so, identify and explain these risks.
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