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An institution that suffers from declining interest rates may hedge by _____. A. selling interest rate futures B. buying interest rate futures C. making fixed-rate
An institution that suffers from declining interest rates may hedge by _____.
- A. selling interest rate futures
- B. buying interest rate futures
- C. making fixed-rate payments in exchange for floating-rate payments in an interest rate swap
- D. making floating-rate payments in exchange for fixed-rate payments in an interest rate swap
- E. both (B) and (D)
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