In the international money market interest-rate risk associated with large commercial loans can be dealt with using the one-month LIBOR futures contract, according to the textbook.

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The one-month LIBOR (London Interbank Offered Rate) futures contract is a financial instrument used in the international money market to hedge against the risk of fluctuating interest rates, including those associated with large commercial loans. By locking in future interest rates, borrowers and lenders can manage the uncertainty and potential volatility of interest rate movements.

In the International Money Market Interest-Rate Risk Associated with Large