Could you please explain to me what is the gap exposure & basis risk with some example if possible and are these two types of interest rate risk that are being asked in the exam? Do they come frequently?
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What is Gap exposure and basis risk?
5y ago#1Neither of these are likely to be asked in Paper FM.
However you can find an explanation of them in my answer to a previous post here:
https://opentuition.com/topic/gap-exposure-and-basis-risk/
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