A company is bidding to buy a large mining facility. It is concerned that interest rates may rise but does not want to fix rates in case it does not win the tender and interest rates fall, in which case it will lose money on the hedge. What type of interest rate derivatives would be most suitable for hedging this exposure?

Select one:

a.Interest rate futures

b.FRAs

c.Interest rate swaps

d.Interest rate options (cap)

e.Interest rate options (floor)