Question
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
Choices
Both statements are correct
Both statements are false
S1 is correct but S2 is false
S2 is correct but S1 is false
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
4th Edition
9780132138079
