Question: there are some derivative instruments to enable hedging against adverse interest rate fluctuations. Long put option (cap) Strip of long put options Long BAB futures

there are some derivative instruments to enable hedging against adverse interest rate fluctuations.

Long put option (cap)

Strip of long put options

Long BAB futures

Short BAB futures

Long TYB futures

Short TYB futures

3 x 6 FRA

6 x 12 FRA

Interest rate swap

No hedge transaction

in the scenario below, which derivative instruments should be adopted. why?

The company also has significant funds on term deposit maturing next month. Your objective is to re-invest the funds for a further three years, at a deposit rate that is locked in now.

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