Suppose you are currently in the long position of a long-term bond. In this case, to hedge against a capital loss, you would enter into a ________ contract to ________ a long-term bond in the future
A) interest-rate forward; sell
B) interest-rate forward; buy
C) exchange-rate forward; buy
D) exchange-rate forward; sell
A
Economics
You might also like to view...
Equilibrium in the loanable funds market determines
A) the real interest rate. B) the nominal interest rate. C) the current interest rate. D) the expected interest rate.
Economics
At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a type of price discrimination because the amusement park charges a lower price to
a. people who have a more elastic demand for amusement parks. b. people with 9-to-5 jobs. c. students who can't visit until after 4 p.m. anyway. d. people who have a more inelastic demand for amusement parks.
Economics