Use futures contracts to reduce or eliminate this risk

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Reference no: EM131915704

Assume the role of a banker that has committed to make a $10,000,000 loan in 60 days and has already committed to a specific, fixed interest rate. How could the bank be negatively affected by a move in interest rates? How can the bank use futures contracts to reduce or eliminate this risk? Be very specific.

Reference no: EM131915704

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