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Ask the Tutor ACCA AFM

phobos12/08

Former userFormer user11y ago

[Content removed at user request]

John MoffatJohn MoffatTutor11y ago#1
If you are borrowing, then it is always a put option (as per my lecture). It is because as the interest rate goes up, the futures price goes down. So you want the option to be able to sell the futures at a fixed price.
John MoffatJohn MoffatTutor11y ago#2
You are welcome :-)
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