Ultimate access to all questions.
Upgrade Now 🚀
Sign in to unlock AI tutor
Which of the following interest rate derivatives is most likely to exhibit the greatest convexity bias?
A
A forward rate agreement (FRA) based on a 1-month market reference rate
B
A forward rate agreement (FRA) based on a 3-month market reference rate
C
An interest rate futures contract based on a 3-month market reference rate
