Sir for interest futures and interest rate options
We can use them for both new loan as well as existing loan right?
Like if we have a existing loan variable rate and if we fear rise in interest rate then we can sell interest rate futures/buy put options ? Right??
And FRA can ONLY be for new loan
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interest rate risk
2y ago#1Interest rate futures and interest rate options can be used for both new loans and existing loans.
You are correct, forward rate agreements (FRAs) are typically used for new loans, not existing ones.
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