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    Financial Institution Management
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    Exam 7: Managing Interest Rate Risk Using Off Balance Sheet Instruments
  5. Question
    Buying a Call Option (Standing Ready to Buy Bonds at the Exercise
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Buying a Call Option (Standing Ready to Buy Bonds at the Exercise

Question 60

Question 60

True/False

Buying a call option (standing ready to buy bonds at the exercise price) is a strategy that a FI may take when bond prices rise and interest rates are expected to fall.

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