ACI
3I0-012 · Question #353
You want to hedge your deposit against falling interest rates. Which of the alternatives below are appropriate for this purpose?
The correct answer is D. Buying a Money Market Future and/or selling a Forward Rate Agreement. See the full explanation below for the reasoning.
Question
You want to hedge your deposit against falling interest rates. Which of the alternatives below are appropriate for this purpose?
Options
- ASelling a Money Market Future and/or selling a Forward Rate Agreement
- BBuying a Money Market Future and/or buying a Forward Rate Agreement
- CSelling a Money Market Future and/or buying a Forward Rate Agreement
- DBuying a Money Market Future and/or selling a Forward Rate Agreement
How the community answered
(26 responses)- A12% (3)
- B8% (2)
- C4% (1)
- D77% (20)
Community Discussion
No community discussion yet for this question.