Which of the Following Strategies Replicates a Long Position in an FRA

question 53

Multiple Choice

Which of the following strategies replicates a long position in an FRA?

• A)long a long term Eurodollar time deposit and short a short-term Eurodollar time deposit
• B)long a Eurodollar futures and short a Eurodollar option
• C)long a Eurodollar option on a futures
• D)short a long-term Treasury bond futures and short a short-term Treasury bond futures
• E)long a receiver swaption

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Unique and advanced knowledge or proficiency in a particular area or discipline.

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