Trading Style
Q1. Explain the classification of Future traders by trading style?
Q2. Suppose there is a commodity in which the expected future spot price is $60.To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50.
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Find the future s price?
Q3. Explain the difference between a short hedge and a long hedge.
Q4. Briefly explain Interest rate swap and currency swap.