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A bank needs to hedge a 6-month gap in 6 months. They need to profit if rates fall. Should the bank buy or sell an
- A bank needs to hedge a 6-month gap in 6 months. They need to profit if rates fall. Should the bank buy or sell an FRA? What rate are they trying to hedge?
The amount they need hedged is $50,000,000. The rate theyre hedging against is currently 2%. On the settlement date, the rate ends up at 1.75%. Did the bank win or loss on this FRA? By how much?
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International Financial Reporting Standards This Work Professes To Assist Finance Professionals And Students To Deep Dive Into International With Illustration And Solved Problems
Authors: B D Chatterjee
1st Edition
150108612X, 9781501086120
