Question
Please explain thoroughly: You work for Tesla and your home currency is the USD. Your predecessor has borrowed in EUR at LIBOR for 5 years.
Please explain thoroughly:
You work for Tesla and your home currency is the USD. Your predecessor has borrowed in EUR at LIBOR for 5 years. You want to hedge the loan and you want to have fixed payments. What should you do?
swap to pay EUR LIBOR and receive USD fixed
swap to receive EUR LIBOR and pay USD fixed
swap to pay EUR fixed and receive USD fixed
swap to receive EUR fixed and pay USD fixed
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
