Many groups have treasury policies that use hedging of net positions . solve They would look at their group-wide exposure in, e . solveg . solve foreign currency and then take forward contracts to cover the position . solve Discuss the difficulties that would arise in hedge accounting if this practice is followed . solve Interest rate swaps can be designated as hedges of underlying borrowings . solve A swap of floating for fixed rate is a cash flow hedge, but a swap of fixed for floating is a fair value hedge . solve Why?