Question
If you need to borrow $20,000,000 in 2 months and want to hedge the interest rate for the following month using a 30-day LIBOR, what
If you need to borrow $20,000,000 in 2 months and want to hedge the interest rate for the following month using a 30-day LIBOR, what strategy would accomplish your goal?
| Borrow $20,000,000 today using a 3 month FRA | ||
| Lend $20,000,000 | ||
| Take a short position in an appropriate FRA | ||
| Take a long position in an appropriate FRA | ||
| Wait 2 months then take a position in an FRA |
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The Emerging Markets Handbook
Authors: Pran Tiku
1st Edition
0857192981, 978-0857192981
