As time has passed since your initial economic forecast, the
economy has rebounded and you’ve become concerned about a
significant increase in intermediate-term interest rates in the
next few months. Corporate profits have also improved and you
believe it is a good time to add credit exposure to your
portfolio.
Indicate below how each type of derivative could be used to
protect the portfolio against interest rate risk while taking
advantage of the profit opportunity of corporate bond spreads
narrowing.
Group of answer choices
Treasury futures
[ Choose
] Neither
Long or Short
Short
Long
Eurodollar futures
[ Choose
] Neither
Long or Short
Short
Long
Interest rate swaps
[ Choose
] Neither
Long or Short
Short
Long
Credit default swaps
[ Choose
] Neither
Long or Short
Short
Long
As time has passed since your initial economic forecast, the economy has rebounded and you’ve become concerned about a s
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