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Examine the heding strategy you developed for BSB in Question 2 through 4. Does this particular strategy represent a static or dynamic hedge? Given your
Examine the heding strategy you developed for BSB in Question 2 through 4. Does this particular strategy represent a static or dynamic hedge? Given your answer to this question, comment on the risk that BSB faces in executing this strategy, and describe how the bank's heding technique might be improved to immunize the bank more effectively against changes in the the level of market interest rates.
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