Interest rate futures options are preferred to bond options because they have more favorable liquidity, credit risk, and market-to-market features.
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Q30: Hedging the FI's interest rate risk by
Q31: Open interest refers to the dollar amount
Q32: An FI with a positive duration gap
Q33: Options become more valuable as the variability
Q34: A naked option is an option written
Q36: A hedge using a put option contract
Q37: The preferred method of FIs when hedging
Q38: Most pure bond options trade on the
Q39: All else equal, the value of an
Q40: The loss for a put option buyer
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