Risk management

This topic has 4 replies, 3 voices, and was last updated 3 years ago by John Moffat.

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September 22, 2022 at 10:46 am #666973
johnbriane
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Sir I have a doubt in below two statements

Buying both interest rate cap and floor is example of interest rate collar
and Interest rate is future hedge can be closed out any time

From the above two statements
Which is the most suitable answer sir
Because both statements are correct
September 22, 2022 at 3:03 pm #666999
salman6565
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2nd option is more relvent
September 22, 2022 at 5:29 pm #667016
John Moffat
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salman6565: Please do not answer in this forum because it is the Ask the Tutor forum and you are not the tutor 🙂 (But please do help people in the other Paper FM forum).

johnbriane: You have asked this before, and I have answered you before. The second statement is most suitable (because interest rate futures can be closed out at any time up to the date of maturity of the future).
September 23, 2022 at 3:05 am #667049
johnbriane
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And sir I have one more concern .
When I asked Few of the tutors they told
Futures have fixed close out dates
And they are

End of march
End of June
End of September
End of December

Are these somewhat related to futures sir

I’m so confused
September 23, 2022 at 7:16 am #667057
John Moffat
Keymaster
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Yes they are the maturity dates and I explain about this in my lectures!!!
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