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If question requires us to recommend interest rate hedging derivative based on cost , and fra is also included in the question.So do we need to do the amount calculation for the interest cost +/- payment/receipt to bank or can we directly just quote a percentage based on FRA rate +/- basis points which i suppose gonna be one line answer(examiner did it like this way in article).Will i get full marks for it? ( I calculate cost of all the derivatives in annual percentage terms)
You can do it that way provided that the question itself does not specify differently (and as always that you explain what you are doing).