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CTP · Question #118
CTP Question #118: Real Exam Question with Answer & Explanation
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Question
- (Topic 2) A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the long-term nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution?
Options
- AForward contract
- BInterest rate swap
- CCurrency option
- DFutures contract
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