Bond/equity 27.5bil / 27.5 bil
balance target Bond/Eq 40/60 - amount need to be reblanced 5,5bil
Sato wants to know if other derivatives could be used to rebalance the portfolio. In response, Watanabe describes the characteristics of a pair of swaps that, together, would accomplish the same rebalancing as the proposed futures contracts strategy.
- Which of these is most likely to be a characteristic of one of the two swaps Watanabe describes to Sato?
A. Receive LIBOR.
B. Pay return on Nikkei 225 Index.
C. Receive return on Nikko Bond Performance Index.
pls give ur explaination