The primary reasons for a counterparty to use a currency swap are( )。
A: to hedge and to speculate.
B: to play in the futures and forward markets.
C: to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market, and the benefit of hedging long-run exchange rate exposure.
D: both a and b
A: to hedge and to speculate.
B: to play in the futures and forward markets.
C: to obtain debt financing in the swapped currency at an interest cost reduction brought about through comparative advantages each counterparty has in its national capital market, and the benefit of hedging long-run exchange rate exposure.
D: both a and b
举一反三
- The<br/>primary reasons for a counterparty to use a currency swap are() A: to<br/>hedge and to speculate. B: to<br/>play in the futures and forward markets. C: to<br/>obtain debt financing in the swapped currency at an interest cost<br/>reduction brought about through comparative advantages each<br/>counterparty has in its national capital market, and the benefit of<br/>hedging long-run exchange rate exposure. D: both<br/>a and b
- The primary reasons for a counterparty to use a currency swap are to play in the futures and forward markets.
- When two parties agree to exchange currency and execute the deal at some specific time in the future, a _____ occurs. （ ） A: forward exchange B: hedging C: currency swap D: spot exchange
- In the forward market, the exchange rate is agreed on at the time of the currency contract, but payment is not made until the future delivery of the currency actually takes place.
- Which of the following statements is FALSE() A: In a currency swap, the notional principal is actually swapped twice, once at the beginning of the swap and again at the termination of the swap. B: The time frame of a swap is called its tenor. C: In a currency swap, only net interest payments are made.