Question
Corporation, a US firm, just signed a contract to provide computer services to Fujitsu of Japan over a 10-year period and receive payments in yen.To
Corporation, a US firm, just signed a contract to provide computer services to Fujitsu of Japan over a 10-year period and receive payments in yen.To manage the operating exposure, Oracle has decided to exchange yen cash flows for dollar cash flows with another party that has the opposite need.This techniqueof managing operating exposure is known as:
A Currency swap
A parallel loan
Currency matching
Currency switching
A back-to-back loan
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
