Tailing-the-hedge normally requires an FI manager to utilize more futures contracts to hedge a cash position than are warranted by the initial analysis.

Name: Tailing-the-hedge normally requires an FI manager to utilize more futures contracts to hedge a cash position than are warranted by the initial analysis.
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Tailing-the-hedge involves adjusting the number of futures contracts downward to account for the time value of money, not increasing them.

Tailing-The-Hedge Normally Requires an FI Manager to Utilize More Futures