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    Business
  3. Study Set
    Financial Institutions Management
  4. Exam
    Exam 24: Options, Caps, Floors, and Collars
  5. Question
    Hedging the FI's Interest Rate Risk by Buying a Put
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Hedging the FI's Interest Rate Risk by Buying a Put

Question 7

Question 7

True/False

Hedging the FI's interest rate risk by buying a put option on a bond is an attractive alternative for an FI.

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