IIA
IIA-CFSA · Question #314
IIA-CFSA Question #314: Real Exam Question with Answer & Explanation
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
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