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Which of the following is the best alternative for a company that is borrowing at a floating rate but is concerned about an increase in
Which of the following is the best alternative for a company that is borrowing at a floating rate but is concerned about an increase in interest rates?
Buy treasury bill (T-bill) futures | ||
Buy call options on T-bill futures | ||
Enter into an interest rate swap to pay the fixed rate and receive the floating rate | ||
Sell put options on T-bill futures |
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