Sample Question #92 (finance – hedging)
Our group owns a large amount of 10-year U.S. Treasury Notes. I can’t tell you the exact number but let’s say it’s $50 million in face value. What can we do so our risk exposure on this position is limited to some given fraction of the total value?
(Comment: I was given this very easy question at a job interview with a global macro fund a few years ago)