Which one of the following statements is most correct about the Lufthansa case discussed in the class? Lufthansa chose to hedge all of its USD accounts payables in options markets Lufthansa decided not to hedge using currency options because the CEO could not justify the options premium Lufthansa chose to hedge all of its USD accounts payables using future contracts Lufthansa chose to hedge all of its USD accounts payables in money markets Lufthansa chose to hedge all of its USD accounts payables using forward contracts - Paragraph Styles Refer to the following table. If Xanadu and Rex are considering an interest rate swap to lower their borrowing costs, which one of the following statements is correct? Xanadu Oil Corporation Rex Technologies BBB AAA Interest Rate Swaps Credit Rating Fixed rate cost of borrowing Floating rate cost of borrowing 5% 796 LIBOR +1.096 LIBOR +0.5% Rex has the comparative advantage when borrowing at the floating rate of LIBOR +0.5% Rex has an absolute advantage when borrowing at the floating rate of LIBOR +1% Nelther Xanadu nor Rex has the comparative advantage Rox has an absolute advantage when borrowing at the fixed rate of 7% Xanadu has absolute advantage when borrowing at the fixed interest rate of 5% Xanadu also has absolute advantage when borrowing at the floating interest rate of LIBOR -0.5% 2 o