question archive Suppose you work for a company that expects to borrow one-year from now to finance a new building

Suppose you work for a company that expects to borrow one-year from now to finance a new building

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Suppose you work for a company that expects to borrow one-year from now to finance a new building. What interest rate risk is it exposed to? How should it hedge this risk with futures? How should it hedge the risk with options? Which strategy would you recommend and why?

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