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Suppose Firm A enters into a currency swap with Firm B , and that the deal is done through a SWAP bank that acts as
Suppose Firm A enters into a currency swap with Firm B and that the deal is done through a SWAP bank that acts as Principal. At the time of the swap, S CADUSD The notional value of the swap is M USD. It is a year swap. The interest paid on the CAD is and on the USD is Firm A receives CAD and Pays USD. Regarding only the swap transaction, other things being equal, Firm A hopes that CAD interest rates decrease. Select one: O True False
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