What financial futures transactions would most likely be use

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Problem 1: What financial futures transactions would most likely be used in a period of rising interest rates? Falling interest rates?

Problem 2: What kind of futures hedge would be appropriate in each of the following situations? a. A bank fears that rising deposit interest rates will result in losses on fixed-rate loans? b. A bank holds a large block of floating-rate loans and market interest rates are falling? c. A projected rise in market rates of interest threatens the value of the bank's bond portfolio?

Reference no: EM132755862

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