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Demonstrate how a firm with a floating rate obligation can use swaps to hedge against rising interest rates. (b) With the aid of a diagram
Demonstrate how a firm with a floating rate obligation can use swaps to hedge against rising interest rates. (b) With the aid of a diagram and a table, show how a call option can be used as a hedging instrument in the equity market. (c) Briefly describe the role of parties to a futures contract.
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