Strip hedging with BAB futures requires the trader to take a position in contracts with successive contract dates.
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Q18: A long futures position means that a
Q19: The futures market discovers forward prices providing
Q20: Futures contracts have non-negotiable features.
Q21: The only cost incurred in taking a
Q22: BAB futures can hedge an interest rate
Q24: Margin payments depend on the movement in
Q25: Speculators buy futures contracts whereas hedgers sell
Q26: Futures are low-risk, low-return investments because no
Q27: Borrowers would set their hedge at the
Q28: Initial margins for various types of futures
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