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As a financial engineer working for a leading Hedge Fund, you are approached by a pension fund seeking to enhance the return of the managed

As a financial engineer working for a leading Hedge Fund, you are approached by a pension fund seeking to enhance the return of the managed investment by investing in structured products. (Using the Floating Rate Note to Hedge)

  1. 1.3Explain how you would hedge your position. You may want to use graphs to

explain your hedging strategy.

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