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Consider the 3-year oil swap. Suppose a dealer is paying the fixed price and receiving floating. What position in oil forward contracts will hedge oil
Consider the 3-year oil swap. Suppose a dealer is paying the fixed price and receiving floating. What position in oil forward contracts will hedge oil price risk in this position?
Long 1-year, 2-year and 3-year forwards.
Short 1-year, 2-year and 3-year forwards.
Short 1-year, 2-year forwards.
Long 1-year, 2-year forwards. Short 3-year forward.
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