A bank can hedge an exposure to an increase in the cash rate by taking a short position in 30-day interbank cash rate futures.
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Q40: The BAB futures contract traded on the
Q41: Price discovery performed by the futures market
Q42: The ASX futures market:
A)now only trades financial
Q43: Futures and forward contracts are both:
A)standardised
B)agreements to
Q44: Which of the following is NOT an
Q46: A borrower can hedge against adverse movements
Q47: A speculator who forecasts an unexpected fall
Q48: The manager of a diversified equity portfolio
Q49: Hedging with futures generally involves basis risk.
Q50: The cash settlement of a futures contract
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