Question
There is a foreign currency swap involving the and LIBOR$ (US Dollar Libor). If a firm buys the foreign currency swap, and then sells a
There is a foreign currency swap involving the and LIBOR$ (US Dollar Libor). If a firm buys the foreign currency swap, and then sells a $-denominated interest rate swap, the firms most likely motive for entering these swaps is to:
A. Transform ST $-denominated debt into LT $-denominated debt
B. Transform ST $-denominated debt into LT -denominated debt
C. Transform ST $-denominated debt into ST -denominated debt
D. Transform LT $-denominated debt into ST $-denominated debt
E. Transform LT $-denominated debt into LT -denominated debt
F. Transform LT $-denominated debt into ST -denominated debt
G. Transform ST -denominated debt into LT -denominated debt
H. Transform ST -denominated debt into LT $-denominated debt
I. Transform ST -denominated debt into ST $-denominated debt
J. Transform LT -denominated debt into ST -denominated debt
K. Transform LT -denominated debt into LT $-denominated debt
L. Transform LT -denominated debt into ST $-denominated debt
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