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If a Corporation Has an Asset Sensitive Gap in a Rising

Question 407

Multiple Choice

If a corporation has an asset sensitive gap in a rising rate environment, which of the following would be considered an appropriate hedging strategy to prevent a decrease in net interest income?


A) Take no action
B) Purchase an interest rate floor
C) Enter into an interest rate swap to receive fixed and pay floating rate payments
D) Enter into an interest rate swap to receive floating and pay fixed rate payment

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