A Bank with a Strong Positive Leverage Adjusted Duration Gap

Multiple Choice

A bank with a strong positive leverage adjusted duration gap can hedge their exposure to interest rate increases by entering into

A) a currency swap agreement to receive the fixed rate payment.
B) an interest rate swap agreement to make the fixed-rate payment side of the swap.
C) a credit swap agreement to receive the floating rate payment.
D) a commodity swap agreement to make the fixed-rate payment side of the swap.
E) an equity swap agreement to make the floating-rate payment side of the swap.