A Company Has Identified an Exposure to Movements in Interest

question 76

Multiple Choice

A company has identified an exposure to movements in interest rates on its existing debt facilities.The company is considering selling futures contracts to manage that risk and is unsure which of the following contracts may NOT be used for managing interest rate risk exposures.

• A) 90-day bank-accepted bills contract
• B) S&P/ASX 200 Index
• C) Three-year Commonwealth Treasury bond contract
• D) Option on a 90-day bank-accepted bill futures contract

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Definitions:

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