Explain How Each of the Following Might Make Use of the Futures

question 57

Essay

Explain how each of the following might make use of the futures market.
(a) A lender who is worried that its cost of funds might rise during the term of a loan it has made
(b) A speculator who believes strongly that interest rates will rise

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Definitions:

Cerebral Hemisphere

One of the two halves of the brain, which are divided by the longitudinal fissure; each hemisphere is responsible for different functions and controls the opposite side of the body.

Visual Centers

Regions of the brain, particularly within the occipital lobe, responsible for processing visual information.

Occipital Lobe

The posterior part of the brain, responsible for processing visual information and is integral to the ability to see and recognize.

Primary Visual Cortex

The region of the brain located in the occipital lobe that processes visual information received from the eyes.