ACI Dealing Certificate 3I0-012 Question # 265 Topic 5 Discussion

ACI Dealing Certificate 3I0-012 Question # 265 Topic 5 Discussion

3I0-012 Exam Topic 5 Question 265 Discussion:
Question #: 265
Topic #: 5

Which of the following statements is correct?


A.

Hedging a long bond position with payer’s swap involves basis risk


B.

Hedging the credit risk of an asset swap package with a credit default swap has no basis risk


C.

Basis risk is a result only of maturity mismatches


D.

Basis risk is a result only of duration mismatches.


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