ACI
3I0-012 · Question #480
3I0-012 Question #480: Real Exam Question with Answer & Explanation
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Question
A bank wants to use STIR futures for establishing a macro hedge for the asset portfolio. Which of the following statements is correct?
Options
- AIt is reasonable for the bank to purchase futures contracts if they expect interest rates to rise.
- BIt is reasonable for the bank to take a long position in anticipation of rising rates.
- CLosses (or gains) in the value of the cash position can be largely offset by gains (or losses) in the
- DIt is reasonable for the bank to sell futures contracts if it expects interest rates to fall
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