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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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