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3I0-012 · Question #654

A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

The correct answer is D. Rising CHF interest rates. See the full explanation below for the reasoning.

Question

A customer sells a LIFFE Euro Swiss futures contract. Which of the following risks could he be trying to hedge?

Options

  • AAn increase in forward USD/CHF
  • BFalling CHF interest rates
  • CA decrease in forward USD/CHF
  • DRising CHF interest rates

How the community answered

(36 responses)
  • A
    8% (3)
  • B
    6% (2)
  • C
    3% (1)
  • D
    83% (30)

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