单选题

A long interest rate call and a short interest rate put is an equivalent position to（）。

A、 a short position in a forward rate agreement.
B、 a pay-fixed interest rate swap.
C、 a long position in a forward rate agreement.

【正确答案】 C

【答案解析】

A long call and short put on interest rates is equivalent to a long position in a forward rate agreement. Both gain when forward rates increase and decline in value when interest rates decrease.