How can you use the futures market to hedge

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Reference no: EM132177220

Question: 1. Why can a country's nominal interest rate never be negative? Why can a country's real interest rate indeed be negative? If a country has a negative real rate, do you think that this suggests that the country is not well integrated into world financial markets? Explain.

2. Because futures contracts are short-term, three-month contracts for fixed value, how can you use the futures market to hedge against longer-term risk for larger amounts of eurodollars?

Reference no: EM132177220

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