How an increase in interest rates may impact the scenario

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Reference no: EM131509742

Assignment: "Hedging"

Please respond to the following in detail and be specific in your responses (mention your sources):

1) Create a scenario where an investor would benefit from using forward and future contracts to hedge an existing risk exposure.

2) Explain how an increase in interest rates may impact the scenario you created.

Reference no: EM131509742

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