For a given time period, assets that mature within the period or reprice within the period are considered rate sensitive.
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Q2: Swaps are usually the best hedging tool
Q3: If a bank specializes in mortgage lending
Q4: A rate sensitive asset is one that
Q5: A firm informs the bank they will
Q6: Microhedging is hedging the interest rate risk
Q8: Basis risk is the risk that the
Q9: A U.S. company has a euro denominated
Q10: Banks must balance liquidity risk, interest rate
Q11: To hedge a positive duration gap a
Q12: The VaR is typically used to measure
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