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Which of the following statements is correct? S1: Taking a long position in EUR in a swap will create synthetic EUR-denominated debt S2: The negative
Which of the following statements is correct?
S1: Taking a long position in EUR in a swap will create synthetic EUR-denominated debt
S2: The negative FX equity exposure of an importer firm can be hedged with a short forward position in a currency swap
S1 is correct, S2 is false
S2 is correct, S1 is false
Both are correct
Both are false
*I know the answer is NOT that both are correct
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