50.1K
Verified Solution
Link Copied!
A swap dealer is a net floating-rate payer and net fixed-rate receiver. The dealer can hedge this position by:
Select one:
a.
unwinding some positions where the dealer is fixed-rate payer.
b.
unwinding some positions where the dealer is floating-rate receiver.
c.
finding another counterparty that wishes to receive floating-rate and pay fixed-rate.
d.
taking a short position in a strip of interest rate futures.
e.
taking a long position in a strip of interest rate futures.
Answer & Explanation
Solved by verified expert
