Based on your understanding of forward and futures contracts, identify the diffe
ID: 2768653 • Letter: B
Question
Based on your understanding of forward and futures contracts, identify the differences between the two: Which of the following are used to hedge against price changes for input materials? Financial futures Commodity futures Jacek feels strongly that the 20-year U.S. Treasury bond yield is too low. Which of the following derivative positions would let him earn a profit if he turns out to be right? A long position in interest rate futures A short position in interest rate futures A short position in structured notes A long position in structured notesExplanation / Answer
1a)Forward
b)Future
c)-
2)commodity future ,as material is a commodity
3) correct option is "Short position in interest rate futures