ACI

3I0-012 · Question #28

You have a short position of 50 EURODOLLAR futures contracts. You can hedge your position by:

The correct answer is A. Selling a FRA for a similar notional amount. See the full explanation below for the reasoning.

Question

You have a short position of 50 EURODOLLAR futures contracts. You can hedge your position by:

Options

ASelling a FRA for a similar notional amount
BBuying a FRA for a similar notional amount
CSelling a call option on the contract
DSelling a put option on the contract

How the community answered

(38 responses)

A
76% (29)
B
16% (6)
C
3% (1)
D
5% (2)

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