While hedging through interest rate futures reduces or eliminates the risk of loss,it also

Question

Quizplus · Accepted Answer

Hedging through interest rate futures eliminates the possibility of an abnormal gain, as it is primarily used to reduce or eliminate risks associated with potential loss. It is not illegal in most cases, and while it may not be accepted by all corporate financial managers, it is a widely used strategy in the financial industry.

While Hedging Through Interest Rate Futures Reduces or Eliminates the Risk