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How to use financial futures to hedge risk in the following circumstances:
a. A bond holder owning a large value of an illiquid bond that she wants to sell
b. A bond holder has exhibited large profits on one of her Treasuries and wants to liquidate, however, she would rather defer the gain until the next tax year.
c. Kelly is expecting to receive her annual bonus next month and she hopes to invest it in long-term municipal bonds. She believes that 'munis' today are selling at quite attractive yields, and she is concerned that bond prices will rise over the next few weeks.

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