Homework Exercises – 9

Query: Why do banks assume interest rate risk? Do they HAVE to do so? ... Loans 500 1.2 Time deps 520 4.1. treasuries 500 4.5 CDs 380 1.3 ... Sell a t-bill contract with 23 days until delivery. 3) Requires a "maintenance margin" and "initial margin" (relatively small) daily gains/losses credited or deducted from margin account. ... ................
................