Pico plc has borrowed heavily in euros and is worried about, Ask an Expert

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Pico plc has borrowed heavily in euros and is worried about increasing interest rates in the eurozone. The Finance Director suggests that Pico plc should sell futures on French bonds (known as OATs or Obligations Assimilables du Trésor).

a. Explain why selling a futures contract on French bonds would reduce the effect of an increase in euro interest rates

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93051855

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