Which of the following statements is not correct?

a.

An Australian bank with fixed-rate loans (assets) in domestic currency and variable-rate liabilities in Swiss Franc is exposed to the risk of increasing interest rates and depreciation of Australian dollars.

b.

An Australian bank with variable rate loans (assets) in domestic currency and fixed-rate liabilities in Swiss Franc is exposed to the risk of declining interest rates and depreciation of Australian dollars.

c.

Replacement risk is the cost incurred by the swap dealer in replacing the defaulting party on the same terms as the original swap.

d.

A financial institution with a positive funding gap (liability) can swap floating rate payments for fixed-rate payments.

e.

The buyer of a credit swap makes periodic payments to the seller until the end of the life of the swap.