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Hedging with Futures Score: 2.5/112/11 answered The following details are for the 30 Day Federal Funds futures contract: The current Fed Funds rate is 4.25%

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Hedging with Futures Score: 2.5/112/11 answered The following details are for the 30 Day Federal Funds futures contract: The current Fed Funds rate is 4.25% and the August futures f is 96.3700. What is the market-implied average of the daily effective federal funds rate during August? Enter 4.25% as 4.25. If you believe that the average of the daily effective federal funds rate during August will be lower than the market-implied rate, should you go long or short the futures contract? long short

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