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- UID
- 217797
- 帖子
- 241
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- 2011-5-24
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- 2012-9-12
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he is selling bond.
if rate goes down - the price of the bond will go up. He will be at risk from someone who bought the bond, has now to pay a higher price, so BUYER of the bond could default.
In order to prevent him from suffering a loss - he would also sell a floor? This way he is restricting his loss.
CP |
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发表于 2011-7-11 19:28
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