INVESTMENTS
INVESTMENTS
11th Edition
ISBN: 9781260689488
Author: Bodie
Publisher: MCG
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Chapter 22, Problem 6PS
Summary Introduction

To think critically about: Withdrawal of the capitals from the future market for other productive uses.

Introduction: Future market is a platform to purchase or sell the assets and commodities at a predetermined value on a future date. This agreement is performed by the mutual concern of both parties.

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Explain how the futures markets can be used to reduce interest rate and input price risk.
2) Suggest what is the best financial instrument to offset market risk exposure and from market volatility? WHY?
Describe how commodity futures markets can beused to reduce input price risk.
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