n NISM Certifications
NSM General NISM
Medium

Hi-Fashion Garments Ltd. has monthly USD loan payments. If the treasury head expects a wider interest rate gap between India and the US, what hedging strategy is suitable?

Practice question from NISM Series I - Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Sell USDINR futures

  2. Buy USDINR futures

    Correct answer

  3. C

    No need to hedge

  4. D

    Buy 1-month USDINR futures and sell 6-month futures

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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