At the completion of a futures contract risk management strategy, a risk manager will have made either a profit or a loss on the futures market transactions.
Posted: January 10th, 2022
At the completion of a futures contract risk management strategy, a risk manager will have made either a profit or a loss on the futures market transactions.
(a) How was the profit or loss in the futures market derived?
(b) Explain how making a loss with the futures market strategy can result in the risk manager hedging an identified risk exposure. (LO 18.3)
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