Question: How can a bank hedge when it makes 1-year fixed-rate loans and finances them with 3-month floating-rate deposits? Buy Eurodollar futures contracts Sell put options

How can a bank hedge when it makes 1-year fixed-rate loans and finances them with 3-month floating-rate deposits?

Buy Eurodollar futures contracts

Sell put options on Eurodollar futures contracts

Sell Eurodollar future contracts

Buy call options on Eurodollar future contracts

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