Q1. Explain the classification of Future traders by trading style? Q2. Suppose there is a commodity in which the expected future spot price is $60.To induce investors to buy futures contracts, a risk premium of $4 is required. To store the commodity for the life of the futures contract would cost $5.50. Find the future s price? Q3. Explain the difference between a short hedge and a long hedge. Q4. Briefly explain Interest rate swap and currency swap.
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