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The 1994 currency crisis that started in_came to be known as in slang terms Russia; Vodka effect Thailand; contagion Mexico; run on the bank Mexico;

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The 1994 currency crisis that started in_came to be known as in slang terms Russia; Vodka effect Thailand; contagion Mexico; run on the bank Mexico; Tequila effect Mexico; run on the market Question 2 Refer to the following table. If Xanadu and Rex are considering an interest rate swap to lower their borrowing costs, which one of the following statements is correct? BOD Interest Rate Swaps Xanadu Oil Corporation Rex Technologies Credit Ratin MA Fixed rate cost of borrowing 5 7 Floating rate cost of borrowing LBOROS LIBOR TOM Rex has an absolute advantage when borrowing at the oating rate of LIBOR 1% Rehan the comparative advantage when borrowing at the floating rate of LIDOR 0.5% Neither Xanadu nor Rex has the comparative advantage Rex has an absolute advantage when borrowing at the face of Xanada habsolute advantage when borrowing at the feed interest rate of S. Xanadu ha bote advantage when borrowing at the floating interest rate of LIBOR +0.5 Question 3 General Electric ( Greed to sell electrical equipment to a Brazilian firm and accept a payment of BRL 4.000.000 in 6 months. How will GE U.S. firmi hedge the receivables? Dyeing call options on the Brazilian currency By taking along position on Brazilian real futres contracts We put options on the Brain currency Dy entering in a forward contract to sell US dollars and buy the Brazilian currency by a thot potition on Brain wall.com A Moving to another question will save this response. Question 1 came to be known as in slang terms The 1994 currency crisis that started in Russia; Vodka effect Thailand; contagion Mexico; run on the bank Mexico; Tequila effect Mexico; run on the market O. Moving to another question will save this response. Moving to another question will save this response. estion 2 Refer to the following table. Xanadu and Rex are considering an interest rate swap to lower their borrowing costs, which one of the following statements is correct? Interest Rate Swaps Xanadu Oil Corporation Rex Technologies Credit Rating MA BBB Pxed rate cost of borrowing 5% 7 Floating rate cost of borrowing LIBOR 105 LIBOR -10M Rex has an absolute advantage when borrowing at the floating rate of UIBOR 1 Rex has the comparative advantage when borrowing at the floating rate of LIBOR +0.5 Neither Xanadu nor Rex has the comparative advantage He has an absolute advantage when borrowing at the fixed rate of 7 Xanadu has absolute advantage when borrowing the wed interest rate of S. Xanadu he has nolute advantage when borrowing at the floating interest rate of LORO Moving to another question will save is response

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