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How can a bank hedge when it makes 1-year fixed-rate loans and finances them with 3-month floating-rate deposits? Buy Eurodollar futures contracts Sell put options
How can a bank hedge when it makes 1-year fixed-rate loans and finances them with 3-month floating-rate deposits?
Buy Eurodollar futures contracts
Sell put options on Eurodollar futures contracts
Sell Eurodollar future contracts
Buy call options on Eurodollar future contracts
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