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    How to pre-invest future cash inflow using stock index futures?

    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...
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    How to pre-invest future cash inflow using stock index futures?

    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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