The short hedge in financial futures contracts is most likely to be used in situations where a bank would suffer losses due to falling interest rates.
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Q41: A currency swap is where two parties
Q42: If a financial institution makes an offsetting
Q43: A hedging tool that provides "one-sided" insurance
Q44: A futures hedge against interest-rate changes generally
Q45: A bank will use a short hedge
Q47: The long hedge in financial futures contracts
Q48: Basis risk is the difference in the
Q49: U.S.Treasury bond futures contracts call for the
Q50: A futures contract is "marked-to-market" weekly to
Q51: The sensitivity of the market price of
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