Question: Define each of the following hedging techniques and explain how each is used to minimize interest rate risk a) Global cash netting b) Embedded options

Define each of the following hedging techniques and explain how each is used to minimize interest rate risk

a) Global cash netting

b) Embedded options in debt

c) Forward Rate Agreements

d) Zero-Coupon Swaps

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a Global cash netting Netting entails offsetting the value of multiple positions or payments due to be exchanged between two or more parties It can be used to determine which party is owed remuneratio... View full answer

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