The most common interest rate derivatives are: - Interest rate swaps, caps, and floors. - Financial futures contracts - Credit default swaps. I would like you to pick one of the following situations below and tell me how you might use a derivative to reduce the risk that is faced by the Bank. I would like a good explanation of the derivative that you plan to use and how it will work to solve your bank's problem. First Western Bank \& Trust's recent acquisition has left them with in interest-sensitive assets greater than interest-sensitive liabilities by $24 million. If interest rates should fall (as suggested by their investment analysist), the bank net interest margin may be squeczed due to the decrease in loan and security revenue. How can the bank use derivatives to solve the problems