Question 4 3 pts Which of the following is true concerning credit risk faced by swap bank? 1. Swap bank always face some credit risk 11. If the swap bank make sure both parties are AAA rated, they can eliminate all their credit risks III. If the swap bank only accept fixed rate and pay LIBOR, it can eliminate credit risk. IV. If a swap bank only accept LIBOR and pays fixed rate, it can eliminate credit risk. OIV only OIL. III and IV O I and IV only O l only Question 5 3 pts Which of the following is the least common hedging method used by corporations to hedge foreign exchange risk? 1. Money market II. Futures/forwards III. Options IV. Swaps I only O I, II and III HI, III and IV I and II only