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Headging Strategy Essay Preview: Headging Strategy Report this essay Part 1 Strategies for hedging the interest rate risk of the acquisition financing of Ђ10 million Various alternatives: Effective interest rates Using Deposits 8.67% Delayed Cap Strike prices: 5.80 % 7.62% 6.80% 8.04% 7.80% 8.66% 3. Interest swaps 7.08% 4. Swaptions 7.37% Using Deposits (Alternative 1).