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Examveda

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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