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Cima P3 > FRA/Futures > Flashcards

FRA/Futures Flashcards

1
Q

FRA borrower

A

Buy an FRA to pay fixed rate interest (hedge increase in interest)

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2
Q

FRA lender

A

Would sell FRA receiving fixed interest

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3
Q

Future borrower

A

Sell Future to pay fixed rate of interest (hedge increase interest)

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4
Q

Future lender

A

Buy future to receive fixed interest

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Cima P3 (5 decks)

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