manasib

job71188 Wrote:
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> revenant Wrote:
> --------------------------------------------------
> -----
> > I think it should be the opposite.
> >
> > Long will benefit when i/r increase. Long has
> the
> > obligation to borrow at the contract rate (say
> > 5%). If i/r increase (say 10%), the long
> benefit
> > by able to borrow at 5% instead of 10%.
> Opposite
> > is true for shortist.
>
>
> This is a T-Bill foward not a Forward Rate
> Agreement (FRA) so no borrowing will take place.
> Sujan, I believe you are correct with your
> interpretation.

Sorry my bad. Brain beginning to switch off after 10 hours of studies.