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:

Barberini

An influential Italian noble family, known for their patronage of the arts and involvement in ecclesiastical and political affairs during the 17th century.

Pietro Da Cortona

An influential Italian Baroque painter and architect known for his dynamic compositions and decorative frescoes.

Fountain Of The Four Rivers

A famous baroque fountain in Rome, Italy, designed by Gian Lorenzo Bernini, featuring sculptures that represent four major rivers of four continents.

Nile's Source

The origin of the Nile River, historically a subject of exploration and debate, now identified with two primary tributaries: the Blue Nile (originating in Lake Tana, Ethiopia) and the White Nile (originating in Lake Victoria, across Uganda, Tanzania, and Rwanda).