What should the company do to hedge the risk

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Reference no: EM133146015

Question - If the company has a $50m variable rate loan with interest payable every 6 months and the next rate set is in 1 month. What should the company do to hedge the risk:

A. sell a 1/7 FRA

B. buy a 1/6 FRA

C. buy a 1/7 FRA

D. sell a 1/6 FRA

Reference no: EM133146015

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