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Question 15 Black Ltd plans to invest in $10 million of commercial paper (with a six-month maturity) two months from today. Black Ltd's Chief Financial
Question 15 Black Ltd plans to invest in $10 million of commercial paper (with a six-month maturity) two months from today. Black Ltd's Chief Financial Officer (CFO) is concerned about recent media reports predicting a decrease in interest rates before the commercial paper is issued. If Black Ltd. were to use FRA's to hedge what position should they take in FRAS? Long position Short position Long position rolled over for another 3 months Short position rolled over for another 3 months
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