86. To protect against interest rate risk, the mortgage banker should:

A. buy futures, as this position will hedge loses if rates rise.

B. sell futures, as this position will hedge losses if rates rise.

C. sell futures, as this position will add to his gains if rates rise.

D. buy futures, as this position will add to his gains if rates rise.

E. None of the above.

88. Interest rate and currency swaps allow one party to exchange:

A. a fixed interest rate position for a currency position over the contract term.

B. a floating interest rate or currency value for a fixed value over the contract term.

C. a fixed interest rate or currency value for a lower fixed value over the contract term.

D. a floating interest rate or currency value for a lower floating value over the contract term.

E. None of the above.