A bank reports its interest rate exposures and its users of derivatives as following:

Question 4 (20 Points) A bank reports its interest rate exposures and its uses of derivatives as following 0.5 -1 year 20,488 15,086 -5beyo ycars 37,764 49,356 1 month or ess 52,320 58,910 months 42,875 38,505 RSA RSL Equity Derivative Periodic Dollar Ga 65,000 Call Futures Options Swap -8,910 -1,705 2,206 8,592 1) (5 Points) For the repricing bucket of 1 month or less, the call option on bond has been a) Sold for hedging against rising interest rate b) Sold for hedging against falling interest rate Bought for speculating on rising interest rate d)Bought for speculating on falling interest rate onc of the above 2) (5 Points) For the repricing bucket of 1 - 6 months, the bond futures have been a) Short hedge against falling interest rate b) Long hedgc against falling intcrest rate c) Sold for speculating on falling interest rate d) Bought for speculating on falling interest rate e) Sold for speculating on rising interest rate 437- 5-4) 3) (5 Points) For the repricing bucket of 0.5 - 1 year, the options on bond have been a) Sold for hedging against rising interest rate old for hedging against falling interest rate c) Bought for speculating on rising interest rate d)Bought for speculating on falling interest rate e)None of the above 4) (5 Points) For the repricing bucket of 1 5 years, the interest rate swap has been Bought for hedging against falling interest rate aying fixed rate to hedge against rising interest rate old for speculating on rising interest rate d) Paying variable rate to hedge against falling interest rate e) Receiving variable rate to speculate on rising interest rate 377bu 42 Question 4 (20 Points) A bank reports its interest rate exposures and its uses of derivatives as following 0.5 -1 year 20,488 15,086 -5beyo ycars 37,764 49,356 1 month or ess 52,320 58,910 months 42,875 38,505 RSA RSL Equity Derivative Periodic Dollar Ga 65,000 Call Futures Options Swap -8,910 -1,705 2,206 8,592 1) (5 Points) For the repricing bucket of 1 month or less, the call option on bond has been a) Sold for hedging against rising interest rate b) Sold for hedging against falling interest rate Bought for speculating on rising interest rate d)Bought for speculating on falling interest rate onc of the above 2) (5 Points) For the repricing bucket of 1 - 6 months, the bond futures have been a) Short hedge against falling interest rate b) Long hedgc against falling intcrest rate c) Sold for speculating on falling interest rate d) Bought for speculating on falling interest rate e) Sold for speculating on rising interest rate 437- 5-4) 3) (5 Points) For the repricing bucket of 0.5 - 1 year, the options on bond have been a) Sold for hedging against rising interest rate old for hedging against falling interest rate c) Bought for speculating on rising interest rate d)Bought for speculating on falling interest rate e)None of the above 4) (5 Points) For the repricing bucket of 1 5 years, the interest rate swap has been Bought for hedging against falling interest rate aying fixed rate to hedge against rising interest rate old for speculating on rising interest rate d) Paying variable rate to hedge against falling interest rate e) Receiving variable rate to speculate on rising interest rate 377bu 42