ACI
3I0-012 · Question #35
A corporate wishing to hedge the interest rate risk on its floating-rate borrowing would:
The correct answer is B. Sell futures. See the full explanation below for the reasoning.
Question
A corporate wishing to hedge the interest rate risk on its floating-rate borrowing would:
Options
- ASell interest rate caps
- BSell futures
- CSell FRAs
- DBuy futures
How the community answered
(38 responses)- A16% (6)
- B76% (29)
- C5% (2)
- D3% (1)
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