CTP Exam Dumps | A company with a relatively poor credit rating borrows most of its funds with short maturities. They

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Question 31/279

A company with a relatively poor credit rating borrows most of its funds with short maturities. They may want to change its exposure to interest rates to more correctly reflect the long-term nature of the projects it is funding. Or, they may believe that long-term interest rates are going to rise, causing it to seek protection against the impact of higher interest rates on its balance sheet. Which of the following would be a solution?

A. Currency option

B. Interest rate swap

C. Forward contract

D. Futures contract

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