The preferred method of FIs when hedging interest rates is an option on interest rate futures rather than using a pure bond option.
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Q32: An FI with a positive duration gap
Q33: Options become more valuable as the variability
Q34: A naked option is an option written
Q35: Interest rate futures options are preferred to
Q36: A hedge using a put option contract
Q38: Most pure bond options trade on the
Q39: All else equal, the value of an
Q40: The loss for a put option buyer
Q41: A call option on the loss ratio
Q42: Banks that are more exposed to rising
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