Financial Analysis

International MRP

May 4, 2021
Risk Management

Mismatch Risk

May 4, 2021

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A transaction in which the trader simultaneously purchases, or takes a long position in, a contract on a specific asset for some maturity month and sells, or takes a short position, in another contract on the same asset for another maturity month. For example, a spread transaction may involve the purchase of one futures contract against the sale of another futures contract with a farther dated contract month.

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