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17. Consider the following fixed for floting rate wap reprices each year and the fixed rate side is tied to Any Ole Bank's halance sheet.

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17. Consider the following fixed for floting rate wap reprices each year and the fixed rate side is tied to Any Ole Bank's halance sheet. Use this swap Ole Bank 's interest rate risk exposure. Th Sell a fixed for floating rate swap with a motions million b. Buy a fixed for floating rate swap with a notional value million. Sell a fixed for floating rate swap wwith a notionall value of S500 million. wallue of SLS a. SMS C. d. Buy a fixed for floating rate swap with a notional value of $250 million. Buy a fixed for floating rate swap with a notional value of $500 million. e. 18. Contrast the efficacy of hedging using futures, forwards, swaps and options. a. Swaps have the most counterparty credit risk, forwards bhave the mosst frequent marking to market and options have the highest transactionms cost. b. Options have the most counterparty credit risk, futures have the most frequent marking to market and options have the highest transactions cost. Futures and options have the most counterparty credit risk, options have the most frequent marking to market and options have the highest transactions cost. d. Forwards have the most counterparty credit risk, options have the most frequent marking to market and options have the highest transactions c. cost. e. Swaps have the most counterparty credit risk, futures have the most frequent marking to market and options have the highest transactions cost

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