Question
1. Which options can be used to hedge a portfolio of residential mortgage loans that are pre-payable at par? Explain in two to three sentences.
1. Which options can be used to hedge a portfolio of residential mortgage loans that are pre-payable at par? Explain in two to three sentences.
2. What type of swap contract does allow hedging a portfolio of fixed-rate loans that are not callable nor pre-payable at a fixed price?
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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
11th Edition
1260288390, 978-1260288391
