Multiple Choice
A long position in an interest rate call would be appropriate for which of the following situations:
A) a bond trader expects falling interest rates
B) a party holding a short position in Eurodollar futures is concerned about losing money
C) a borrower expects rising interest rates
D) a lender expects rising interest rates
E) a derivatives dealer is exposed to the risk of falling interest rates
Correct Answer:
Answered by ExamLex AI
Correct Answer:
Answered by ExamLex AI
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