Multiple Choice
If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.30-1.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?
A) FRA
B) Futures
C) No difference
D) Too little information to decide
Correct Answer:
Verified
Correct Answer:
Verified
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