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company H MTQ followup

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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May 15, 2018 at 1:33 pm #452084
humai
Participant
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Sir please explain me just 1 point that why in both cases (FRA and interest rate future) company H still needs to borrow money at the market rate in 3 months time?
May 15, 2018 at 6:46 pm #452146
John Moffat
Keymaster
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Because the question says they are borrowing money in 3 months time (otherwise there would be no point in using FRA or interest rate futures!).
Again, you cannot possibly have watched the lectures, and you cannot expect me to type out my lectures here.
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