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    Financial Institutions Management Study Set 2
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    Exam 7: Managing Interest Rate Risk Using Off-Balance-Sheet Instruments
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    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 37

Question 37

True/False

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

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