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It is 1 st January and you expect to receive $ 1 0 m in 2 months time. You will place this receipt in a
It is st January and you expect to receive $m in months time. You
will place this receipt in a bank deposit for a further months, on which
you will receive LIBOR. Explain what Eurodollar futures contract you
would use to hedge your cash position. What are the risks in the hedge
you have chosen?
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