A commercial bank recognizes that its net income suffers whenever interest rates

A commercial bank recognizes that its net income suffers whenever interest rates increase. Which of the following strategies would protect the bank against rising interest rates?a. Entering into an interest rate swap where the bank receives a fixed payment stream, and in return agrees to make payments that float with market interest rates.b. Purchase principal only (PO) strips that decline in value whenever interest rates rise.c. Enter into a short hedge where the bank agrees to sell interest rate futures.d. Sell some of the bank’s floating-rate loans and use the proceeds to make fixed-rate loans.e. Buying inverse floaters

Place a custom essay order similar to this or any related topic. NB: The assignment paper will be written from scratch as per your instructions and it will be 100% original. It will pass all plagiarism check.