6
Interest Rate Futures
LEARNING OBJECTIVES
After completing this chapter, you will be able to answer the following questions:
- How does interest rate risk affect businesses?
- What are T-bond futures and T-bill futures?
- How are interest rate futures contracts priced?
- How are interest rate futures contracts used?
BOX 6.1 Interest Rate Futures for Foreign Portfolio Investors
Reserve Bank of India has approved trading of interest rate futures (IRF) by foreign portfolio investors (FPI) approved to trade in Indian market as this move is expected to facilitate further market development. In order to make certain that access of FPIs to IRF is not interrupted, a separate limit of INR 5,000 crores will be used for long positions held by FPIs. The ...
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