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1. What are some of the advantages and disadvantages of the following methods for hedging interest-rate risk? a)Forwards b) Futures c) Buying options c) Writing

1. What are some of the advantages and disadvantages of the following methods for hedging interest-rate risk?

a)Forwards

b) Futures

c) Buying options

c) Writing options

d) Swaps

2. How does the credit risk on swaps differ from the credit risk on loans?

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