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NEW QUESTION: 1
A. S822
B. S824L
C. S824
D. S812L
Answer: D
NEW QUESTION: 2
Answer:
Explanation:
Explanation
NEW QUESTION: 3
You are paying 5% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10 million interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 4.95%. How would you hedge the swap using FRAs? How to hedge an IRS with a strip of FRAs?
A. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
B. sell a strip of 6x12, 12x18 and 18x24 FRAs
C. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
D. buy a strip of 6x12, 12x10 and 16x24 FRAs
Answer: B
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