26. Euro credits feature rollover pricing.

O a. all of these answers

O b. none of these answers

O c.

Rollover pricing was created on Euro credits so that Euro banks do not end up paying more on Euro currency time deposits than

they earn from the loans.

O d. The lending rate on these Euro credits is stated as LIBOR + X percent, where X is the lending margin charged depending upon the

credit worthiness of the borrower. LIBOR is reset according to a set schedule

O

e.

Because of the rollover pricing feature, a Euro credit may be viewed as a series of shorter-term loans, where at the end of each time

period (generally three or six months), the loan is rolled over and the base lending rate is repriced to current LIBOR over the next

time interval of the loan.