FRAs can t be used for

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FRAs can’t be used for

A. Hedging

B. Arbitraging

C. Speculating

D. Any of the Above

Answer: Option D

Solution (By Examveda Team)

FRAs can’t be used for Hedging, Arbitraging and Speculating. FRAs are used to help companies manage their interest rate exposures. FRAs can be used by borrowers who have a desire or need to alter their interest rate or cash flow profile to suite their particular needs.

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