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Question 6 a. Identify and explain two primary risks related to the use of interest rate swap. (10 marks) b. Explain the differences between foreign

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Question 6 a. Identify and explain two primary risks related to the use of interest rate swap. (10 marks) b. Explain the differences between foreign exchange forward contracts, futures contracts, and options. (10 marks) c. How is credit risk managed in case of foreign exchange futures contracts? Discuss with the use of an example. (13.33 marks) (TOTAL 33.33 MARKS)

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