____ is (are)least likely to be used as a method of reducing interest rate risk.
A)Maturity matching
B)Floating-rate loans
C)Stock options
D)Interest rate swaps
E)Interest rate caps

Question

Quizplus · Accepted Answer

Stock options are not directly used to manage interest rate risk. They are more commonly associated with managing the risk related to the price movements of stocks. Interest rate risk management typically involves financial instruments directly related to interest rates, such as floating-rate loans, interest rate swaps, and interest rate caps. Maturity matching also helps in aligning the durations of assets and liabilities to mitigate interest rate risk.

____ Is (Are)least Likely to Be Used as a Method