Question
Which of the following derivative contracts is most likely to be used by a bank to reduce interest rate risk by agreeing to exchange payments
Which of the following derivative contracts is most likely to be used by a bank to reduce interest rate risk by agreeing to exchange payments tied to a fixed rate for payments tied to a floating rate?
- A. Futures
- B. Option
- C. Swap
- D. Forward
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
