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I don’t quite understand why the statement 3 and statement 4 of this question is wrong, could you explain it for me? As usual thank you a lot!!
To hedge against interest rates increasing they would sell futures and buy later (not buy futures and sell later).
Given that they are paying interest already, taking out an overdraft would mean then paying more interest.
I am afraid that from now on I must limit you to three questions a day. You are treating this forum as a place to get free private tuition, which we do not offer, and I am spending more time answering your questions than everyone else combined. The free lectures have been permanently available as has this forum and you should have asked questions as you were studying over the last few months.
You’re right sir, I should have done more practice and asked them ealier than now. I truly apologise for this, and I will limit my questions within 3 every day. Thank you alwasys for helping me!
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