A corporation knows that in three months it will have $5 mil
Question and Solution
A corporation knows that in three months it will have $5 million to invest for 90 days at LIBOR minus 50 basis points an
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A corporation knows that in three months it will have $5 million to invest for 90 days at LIBOR minus 50 basis points and wishes to ensure that the rate obtained will be at least 6.5%. What position in exchange-traded options should it take to hedge?
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