Say you are in a country that does not permit corporations to have on balance sheet exposure to equity market risk, so the company cannot, for example, take positions in equities or equity indices outright. How might a CFO of a company still take on such risks?

a. Enter into an equity swap to pay the equity index return and receive LIBOR.

b. Enter into an equity swap to receive the equity index return and pay LIBOR.

c. Both A and B.

d. Neither A nor B.