0 Yogesh AgarwalPro Asked: January 28, 20222022-01-28T16:17:36+05:30 2022-01-28T16:17:36+05:30In: Derivatives (CFA L1) SWAPS 0 Plz Explain? Share Sorry, you do not have permission to answer to this question. 1 Answer Oldest Best Answer DS Pro 2022-01-28T16:25:37+05:30Added an answer on January 28, 2022 at 4:25 pm If the bank entered into an interest rate swap where it is paying FIXED rate, that means the bank is receiving FLOATING rate in the swap. This basically means that the bank has floating rate LIABILITY and wants to hedge against any increase in the interest rate. Answer is C
If the bank entered into an interest rate swap where it is paying FIXED rate, that means the bank is receiving FLOATING rate in the swap.
This basically means that the bank has floating rate LIABILITY and wants to hedge against any increase in the interest rate.
Answer is C