Question
Assume today is mid-October 2010 and you have just issued $1mil Bank Accepted Bill (BAB) for 90 days (i.e. the borrowing period is between today
Assume today is mid-October 2010 and you have just issued $1mil Bank Accepted Bill (BAB) for 90 days (i.e. the borrowing period is between today and mid-January 2011). Fearing that the BAB yield will move against you between now and mid-January 2011, you intend to lock in the borrowing rate by using the BAB futures. You will:
| A. | Long BAB today | |
| B. | Long the BAB futures today | |
| C. | Short the BAB futures today | |
| D. | Short BAB today |
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43 Ways To Finance Your Feature Film A Comprehensive Analysis Of Film Finance
Authors: John W. Cones
3rd Edition
0809326930, 978-0809326938
