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:

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and innovative changes.

Survey Feedback

A method of gathering data from respondents about their perceptions, opinions, or behaviors and then providing them with collective results for insights or action planning.

Critical Decisions

Important choices that have significant effects on the outcome of various situations or problems.

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A gathering where individuals exchange information about performance, projects, or tasks to enhance understanding, quality, or outcomes.