Would a long hedge be more appropriate than a short hedge


-Stan has sold a futures contract on Treasury bills that specified a price of 97.42. When the settlement date arrived, Stan closed out his position by purchasing a Treasury bills futures contract for 98.39. Ignoring transaction costs, determine Stan's profit or loss.

Would a long hedge be more appropriate than a short hedge for AFB? Why or why not?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Would a long hedge be more appropriate than a short hedge
Reference No:- TGS02702705

Expected delivery within 24 Hours