Would a long hedge be more appropriate than a short hedge

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Reference no: EM131907220

-Stan has sold a futures contract on Treasury bills that specified a price of 97.42. When the settlement date arrived, Stan closed out his position by purchasing a Treasury bills futures contract for 98.39. Ignoring transaction costs, determine Stan's profit or loss.

Would a long hedge be more appropriate than a short hedge for AFB? Why or why not?

Reference no: EM131907220

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