Question: why D? 5. You predict that you will be short of funds in 6 months' time. The 69 FRA rate is quoted to you as

why D?

5. You predict that you will be short of funds in 6 months' time. The 69 FRA rate is quoted to you as 4.45/4.55 ) and the relevant STIR future price is 95.47,95.58. How should you hedge this exposure? Buy a FiRA a. Buy the FRA@4.55 b. Sell the FRA@4.45 13wy@opper 1. Felures c. Buy the future@95.58 - d. Sell the future@95.47

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