Which of the Following Transactions Would Have the Effect of Lengthening

question 471

Multiple Choice

Which of the following transactions would have the effect of lengthening the average duration of assets in the banking book?

• A) buying futures contracts on 30-year German Government bonds
• B) selling futures contracts on 30-year German Government bonds
• C) buying put options on 30-year German Government bonds
• D) buying a 3x6 forward rate agreement

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