Suppose you have 100 million in libor loans and you wish to, Ask an Expert

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Suppose you have $100 million in LIBOR loans and you wish to hedge the interest rate risk of this position. You have 2 choices: trade FRAs or ED futures.

a. Would you buy or sell ED futures?

b. Discuss the similarities and differences between these two choices. (Assume the FRAs are paid-in-arrears FRAs)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92322379

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