Char
2024-02-16 12:24How about short for lend? Can you give me an example to illustrate it?
所屬：CFA Level I > Derivatives 視頻位置 相關(guān)試題
來(lái)源： 視頻位置 相關(guān)試題
1個(gè)回答
Michael助教
2024-02-18 14:53
該回答已被題主采納
Hello, let me give you an example.
If now you want to deposit a sum of money in the future to the bank, this process is also called lending money to the bank to get interest returns, or investing money to the bank to get investment returns, and you are worried that the forward interest rate (in this case, the underlying asset) will fall and the return will decrease. Therefore, at this time, investors should short (shorting derivatives can hedge against the fall of the underlying asset) forward rate agreement to lock in the lending rate of funds in advance.
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