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An Fl issued $1 million of 2-year maturity fixed-rate CDs (Certificate of Deposits). What is the Fl's interest rate risk exposure and how can it
An Fl issued $1 million of 2-year maturity fixed-rate CDs (Certificate of Deposits). What is the Fl's interest rate risk exposure and how can it use financial futures to hedge that risk exposure? A The Fl can hedge its exposure to interest rate decreases by selling future contracts B The Fl can hedge its exposure to interest rate decreases by buying future contracts C) The Fl can hedge its exposure to interest rate increases by buying future contracts D) The Fl can hedge its exposure to interest rate increases by selling future contracts
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