It is possible to create a synthetic fixed-rate position from floating-rate instruments using futures contracts.Forward contracts cannot be used.

Question

Quizplus · Accepted Answer

Both futures and forward contracts can be used to create synthetic fixed-rate positions from floating-rate instruments, as they both allow for the locking in of prices or rates today for transactions that will occur in the future.

It Is Possible to Create a Synthetic Fixed-Rate Position from Floating-Rate