Flexibility in hedging instruments

Liming

New Member
Dear David,
I’ve had some confusion, misunderstanding and doubts when doing 09 Level I Annotated Boot Camp. Appreciate your kind help on this!

Flexibility in instruments hedging against future, unanticipated and significant increases in borrowing rates:
I’ve thought about “put option on Eurodollar future” and can you please verify if this can also serve as a flexible hedge besides caplet?


Thank you for your enlightenment and correction!
Cheers
Liming
10/11/09
 
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