Fin -the treasurer for thornton pipe and steel company
The treasurer for Thornton Pipe and Steel Company wishes to use financial futures to hedge her interest rate exposure. She will sell five Treasury futures contracts at $105,000 per contract. It is July and the contracts must be closed out in December of this year. Long-term interest rates are currently 7.4 percent.If they increase to 8.5 percent, assume the value of the contracts will go […]