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C.G. Bank would like to buy some U.S. Treasury bonds next month. The bank forecasts that interest rate will fall in the coming few weeks.
- C.G. Bank would like to buy some U.S. Treasury bonds next month. The bank forecasts that interest rate will fall in the coming few weeks.
The bank should use long hedge strategy with Treasury bond futures contract for the above situation.
Do you agree with the above statement? Explain your answer.
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
