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If by April 4, 2018, balance sheet rates actually fall by 0.75 percent, futures rates fall by 1.05 percent, and T-bond rates underlying the option
If by April 4, 2018, balance sheet rates actually fall by 0.75 percent, futures rates fall by 1.05 percent, and T-bond rates underlying the option contract fall by 1.24 percent, would the FI have been better off using the futures contract or the option contract as its hedge instrument?
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