Question
A investment company is planning to investment and deposit USD $10 million to one of the investment banks which based on a floating rate basis
A investment company is planning to investment and deposit USD $10 million to one of the investment banks which based on a floating rate basis in three months time. Which of the following derivatives will provide a suitable hedge against any unfavourable changes in interest rates over the next three months?
Group of answer choices
Sell 3X9 FRA.
Buy 3-month Euro Dollar futures contracts.
Buy 3X6 FRA.
Sell 3-month Euro Dollar futures contracts.
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Technical Analysis The Complete Resource for Financial Market Technicians
Authors: Charles D. Kirkpatrick, Julie R. Dahlquist
1st edition
