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Q1 - How does a company use the forward and future contract for hedging to reduce the risk of transactions? Give an exmple? Q2. Refer

Q1- How does a company use the forward and future contract for hedging to reduce the risk of transactions? Give an exmple?

Q2. Refer to Table 10-4 form textbook.

image text in transcribedimage text in transcribed

a What was the settlement price on the December 2011 Eurodollar futures contract on September 1, 2010?

b How many 5-year Treasury not futures contract traded on August 31, 2010

c What is the face value on a Swiss franc currency futures contract on September 1, 2102?

d What was the settlement price on the September 2010 DJIA futures contract on August 31, 2010

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