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Futures Markets and Risk Management


AFTER STUDYING THIS CHAPTER YOU SHOULD BE ABLE TO:

  • Calculate the profit on futures positions as a function of current and eventual futures prices.
  • Formulate futures market strategies for hedging or speculative purposes.
  • Compute the futures price appropriate to a given price on the underlying asset.
  • Design arbitrage strategies to exploit futures market mispricing.
  • Determine how swaps can be used to mitigate interest rate risk.










Essentials of Investments, 7eOnline Learning Center

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