ACI Dealing Certificate 3I0-012 Question # 273 Topic 6 Discussion

ACI Dealing Certificate 3I0-012 Question # 273 Topic 6 Discussion

3I0-012 Exam Topic 6 Question 273 Discussion:
Question #: 273
Topic #: 6

If a dealer needs to hedge an over-lent 3x6 position against 1MM dates for which the FRA is quoted 1.30-1.34% and futures at 98.64, which would be cheapest for him (ignoring margin costs on futures positions) to cover his gap?


A.

FRA


B.

Futures


C.

No difference


D.

Too little information to decide


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