A corporate treasurer buy bonds of $1 million for 3 months and he wants to repurchase that hedging bonds but it will take two months for granting the permission of boards of directors. Characters in the case : A person and board of directors Adequate information: Treasure purchases some bonds for 3 months and he wants to repurchase it as the prices go down. Then he should enter into a long position for it. To determine: Action taken by one to repurchase the bonds in the future market or will go for the long or short.

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Chapter 22, Problem 15PS

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Case summary: A corporate treasurer buy bonds of $1 million for 3 months and he wants to repurchase that hedging bonds but it will take two months for granting the permission of boards of directors.

Characters in the case : A person and board of directors

Adequate information: Treasure purchases some bonds for 3 months and he wants to repurchase it as the prices go down. Then he should enter into a long position for it.

To determine: Action taken by one to repurchase the bonds in the future market or will go for the long or short.

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