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ACI

3I0-012 · Question #113

It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

The correct answer is C. Sell 4x7. See the full explanation below for the reasoning.

Question

It is June. You are over-borrowed from October to January on your deposit book. How would you hedge using FRAs?

Options

  • ASell 3x6
  • BBuy 3x6
  • CSell 4x7
  • DBuy 4x7

How the community answered

(31 responses)
  • A
    3% (1)
  • B
    3% (1)
  • C
    84% (26)
  • D
    10% (3)

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