Hi there folks,
Whilst I was once a futures trader and have a working knowledge of derivatives (enough to do what I need to do) , it is not my focus and I'm struggling to help out a friend who is working on a research project for a post-grad finance dilploma/degree.
Can anyone suggest a reference/link or any ideas for addressing the following sort of topic?? .........I have just quoted what she has sent me.
"I am currently attempting to complete my assignment and finding it difficult to explain interest rate hedging using derivative products to creat a "zero sum basis" .
The three areas I am attempting are:-
Any suggestions appreciated. I'm assuming it's more complicated than just matching your $$ exposure to a rate move with a matching put/call on the bond market where the contract has the equivalent $ exposure.