Question: 11. How can a bank with a strong negative leverage adjusted duration gap hedge the exposure to interest rate risk? a.Entering into a currency swap

11. How can a bank with a strong negative leverage adjusted duration gap hedge the exposure to interest rate risk?

a.Entering into a currency swap agreement to receive the fixed rate payment.

b. Entering into an interest rate swap agreement to make the fixed-rate payment side of the swap.

c. Entering into an interest rate swap agreement to make the floating-rate payment side of the swap.

d. Entering into the commodity swap agreement to make the fixed-rate payment side of the swap.

e. Entering into the equity swap agreement to make the floating-rate payment side of the swap

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