Hmm, interesting, thank you very much. Although I still think the usage of hedger is misleading.
FYI, the problem is as below,
Which of the following situations describe a hedger with exposure to basis risk?
I. A portfolio manager for a large-cap growth fund knows he will be receiving a...
This is part of the prompt of an FRM problem,
A portfolio manager for a large-cap growth fund knows he will be receiving a significant cash investment from a client Within the next month and wants to pre-invest the cash using stock index futures.
I don't really understand the prompt, basically...
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