September 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

interest rate risk

This topic has 1 reply, 2 voices, and was last updated 1 year ago by LMR1006.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 11, 2023 at 9:30 am #694668
krrish2005
Participant
- Topics: 138
- Replies: 229
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
November 11, 2023 at 5:46 pm #694677
LMR1006
Keymaster
- Topics: 4
- Replies: 1568
Interest 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.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.