What is the role of hedging in financial futures markets


1. The current interest rate in the U.S. is 2.7% and in the Eurozone it is 1.8%. If the Spot rate is currently EURUSD 1.1906, what is the six-month Forward rate also expressed in EURUSD, that is, expressed in USD per EUR?

2. How to find the present value of an annuity with payments of $12,000 for 3 years at 8%.

3. What is the role of hedging in financial futures markets? Contrast this with arbitraging.

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Financial Management: What is the role of hedging in financial futures markets
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