Question
A borrower needs to borrow in the future and sees that interest rates in the future likely to rise. What shall the borrower do? A.
A borrower needs to borrow in the future and sees that interest rates in the future likely to rise. What shall the borrower do?
A. Buy a FRA to lock in an interest rates that he can borrow in the future
B. Buy a FRA and lock in the spot interest rate so that he can borrow now.
C. Sell a FRA to lend money
D. Sell a FRA to borrow money
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
