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You Anticipate a Three-Month Borrowing in 6 Months' Time 6×96 \times 9

Question 14

Multiple Choice

You anticipate a three-month borrowing in 6 months' time. To hedge the interest-rate exposure you can go either


A) Long a 6×96 \times 9 FRA or long a eurodollar futures contract maturing in 6 months.
B) Short a 6×96 \times 9 FRA or long a eurodollar futures contract maturing in 6 months.
C) Long a 6×96 \times 9 FRA or short a eurodollar futures contract maturing in 6 months.
D) Short a 6×96 \times 9 FRA or short a eurodollar futures contract maturing in 6 months.

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