Q29
FRAs can’t be used for
A.
Hedging
B.
Arbitraging
C.
Speculating
D.
Any of the Above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
FRAs can’t be used for Hedging, Arbitraging and Speculating. FRAs are used to help companies manage their interest rate exposures. FRAs can be used by borrowers who have a desire or need to alter their interest rate or cash flow profile to suite their particular needs.