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Technical note
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Reference no. UVA-F-1428
Authors: Robert M Conroy
Published by: Darden Business Publishing
Originally published in: 2007
Version: 21 October 2009
Length: 17 pages
Data source: Published sources

Abstract

This technical note expands on the previous note, ''Forwards and Futures'' (UVA-F-1427), which introduced the basics of forward and futures contracts. It begins with examples where the hedging was one-for-one and the maturity of the futures contract exactly matched the timing of the transaction. Often at times the hedging approach is not as clear as it is in those examples. This note covers hedging and more complex examples.

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Abstract

This technical note expands on the previous note, ''Forwards and Futures'' (UVA-F-1427), which introduced the basics of forward and futures contracts. It begins with examples where the hedging was one-for-one and the maturity of the futures contract exactly matched the timing of the transaction. Often at times the hedging approach is not as clear as it is in those examples. This note covers hedging and more complex examples.

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