Hedging the FI's interest rate risk by buying a put option on a bond is an attractive alternative to a manager.

Name: Hedging the FI's interest rate risk by buying a put option on a bond is an attractive alternative to a manager.
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Buying a put option on a bond can provide the FI with protection against a decrease in interest rates, reducing the FI's interest rate risk. This can be an attractive alternative for a manager as it allows them to hedge their risk without having to sell the underlying bond.

Hedging the FI's Interest Rate Risk by Buying a Put