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Question
A bank with short-term floating-rate assets funded by long-term fixed-rate liabilities could hedge this risk by
I. buying a T-bond futures contract.
II. buying options on a T-bond futures contract.
III. entering into a swap agreement to pay a fixed rate and receive a variable rate.
IV. entering into a swap agreement to pay a variable rate and receive a fixed rate.
A. I and III only
B. I, II, and IV only
C. II and IV only
D. III only
E. IV only
Answer
This answer is hidden. It contains 1 characters.
Related questions
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