Solved

To Protect Against Interest Rate Risk,the Mortgage Banker Who Has

Question 2

Multiple Choice

To protect against interest rate risk,the mortgage banker who has committed to lending funds but has yet to raise those funds should:


A) buy futures,as this position will hedge losses if rates rise.
B) sell futures,as this position will hedge losses if rates rise.
C) sell futures,as this position will add to his gains if rates rise.
D) buy futures,as this position will add to his gains if rates rise.
E) avoid the futures market.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents