Specimen
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MC Question 1
Formulae & Tables
FM (F9) Formulae Sheet
You will get this Formula Table at the exam so learn well how to apply it in your FM (F9) Exam
In relation to hedging interest rate risk, which of the following statements is correct?
A. The flexible nature of interest rate futures means that they can always be matched with a specific interest rate exposure
B. Interest rate options carry an obligation to the holder to complete the contract at maturity
C. Forward rate agreements are the interest rate equivalent of forward exchange contracts
D. Matching is where a balance is maintained between fixed rate and floating rate debt