In April, company A plans to invest RM5 million in the interbank money market in three months' time. The company's treasurer, Mr. Lee, has a strong feeling that interest rates will be falling. To protect the company from an interest-rate downturn, Mr. Lee should ________________.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A. buy 5 July KLIBOR futures contracts
B. sell 5 July KLIBOR futures contracts
C. buy 5 April KLIBOR futures contracts
D. sell 5 April KLIBOR futures contracts
Answer:A
In April, company A plans to invest RM5 million in the interbank money market in three months' time. The company's treasurer, Mr. Lee, has a strong feeling that interest rates will be falling. To protect the company from an interest-rate downturn, Mr. Lee should ________________.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A. buy 5 July KLIBOR futures contracts B. sell 5 July KLIBOR futures contracts C. buy 5 April KLIBOR futures contracts D. sell 5 April KLIBOR futures contracts