IIA
IIA-CFSA · Question #314
If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?
The correct answer is A. Take no action. See the full explanation below for the reasoning.
Question
If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?
Options
- ATake no action
- BPurchase an interest rate floor
- CEnter into an interest rate swap to receive fixed and pay floating rate payments
- DEnter into an interest rate swap to receive floating and pay fixed rate payment
How the community answered
(61 responses)- A74% (45)
- B7% (4)
- C3% (2)
- D16% (10)
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