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You Have the View That Rates Will Be Rising Over

Question 10

Multiple Choice

You have the view that rates will be rising over time. What is thebest kind of swap to exploit this view from among the following alternatives?


A) Pay fixed, receive floating.
B) Pay floating, receive fixed.
C) A maturity-mismatch basis swap in which you pay floating indexed to three-month Libor and receive fixed indexed to six-month Libor.
D) Pay fixed, receive floating on a reverse-amortization swap.

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