A Company Who Intends to Borrow in 3 Months Can

question 30

Multiple Choice

A company who intends to borrow in 3 months can hedge and lock in the cost of borrowing by:

• A) buying an interest rate futures contract.
• B) selling an interest rate futures contract.
• C) selling a FRA.
• D) buying an interest rate swap.

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Definitions:

Network Position

Refers to the specific location or role of an individual or an entity within a network, defining their level of influence, connectivity, and access to resources.

Satisfaction

The feeling of contentment or fulfillment obtained from achieving one's desires, expectations, or needs.

Decentralized Network

A network structure characterized by the distribution of resources and decision-making authority among all members rather than a central authority.

Social Network Analysis

A methodology for mapping and measuring relationships and flows between people, groups, organizations, computers, URLs, and other connected information/knowledge entities.