How you can use futures to lock in the rate for next year


Problem

In November next year, Ever Steady Constructions Ltd will need to borrow $40m from the market. They are going to issue bills but are worried that the rates may increase by next year. Explain to Ever Steady Constructions Ltd how you can use futures to lock in the rate for next year.

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Financial Accounting: How you can use futures to lock in the rate for next year
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