You are planning to enter into a long forward hedge to offset a short forward position. If you choose a futures contract over a forward contract, which of the following circumstances do you want?;a. Do you want the term structure of interest rates (example...the plot of interest rates against maturities) to be sloped up or down?? and why;b. DO you want the volatility of interest rates to be increasing or decreasing? and why;c. Do you want the volatility of the futures price change to be hugher or lower than the forward price? and why;d. Do you want the correlation of the spot to futures to be higher or lower than that of the spot to forwards? and why;please discuss in detail
Long forward hedge
This question was answered on: Dec 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 18, 2020EXPERT
GET INSTANT HELP
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).