1.A company currently borrows at a floating rate. If the company desires to protect itself against interest rate fluctuations, which of the following actions should they take.

Group of answer choices

A. Enter a swap agreement where they pay fixed rate and receive floating rate

B. Enter a swap agreement where they pay floating rate and receive fixed rate

C. Enter a currency swap where they receive payment in Euro and make payment in US dollar

D. Refrain from distributing dividends so they have cash to make interest payments

E. Delay payments to suppliers so they have cash to make interest payments

2.

Which one of the following terms applies to a legally binding agreement between two parties calling for the sale of an asset or product in the future at price agreed today.

Group of answer choices

A. Future contract

B. Forward contract

C. Swap agreement

D. Commercial insurance

E. Promissory note