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.Related Questions on International Finance and Treasury
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