Slide 11 Hedging Strategies Using Futures Chapter 3 Slide 2 2 Long & Short Hedges A long futures hedge is appropriate when you know you will purchase an asset in the…

1.3.1 Hedging Strategies Using Futures Chapter 3 2. 3.2 Long & Short Hedges: Anticipatory Hedging Rule  Do now in the futures market what you expect to do in the future…

1. Chapter 3 Hedging Strategies Using Futures 1 2. Long & Short Hedges A long futures hedge is appropriate when you know you will purchase an asset in the future and…

1. Mechanics of Futures Markets 1 2. Futures Contracts Available on a wide range of assets Exchange traded Specifications need to be defined: What can be delivered, Where…

Slide 1 Hedging Strategies Using Futures Chapter 4 Slide 2 Chapter Outline 4.1 Basic principles 4.2 Arguments for and against hedging 4.3 Basis risk 4.4 Minimum variance…

Slide 1 4.1 Hedging Strategies Using Futures Chapter 4 Slide 2 4.2 Long & Short Hedges A long futures hedge is appropriate when you know you will purchase an asset in…

Slide 1 FUTURES Slide 2 Definition Futures are marketable forward contracts. Forward Contracts are agreements to buy or sell a specified asset (commodities, indices, debt…