Like the stock exchange and the futures exchange, it can become the investor’s last trading counterparty.

The primary reasons for a counterparty to use a currency swap are to play in the futures and forward markets.

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

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

Which of the following statements regarding early termination of a forward contract is TRUE() A: There is no way to terminate a forward contract early. B: A party who enters into an offsetting contract to terminate has no risk. C: Early termination through an offsetting transaction with the original counterparty eliminates default risk.

Which of the following statements regarding early termination of a forward contract is most accurate A: A party who enters into an offsetting contract to terminate has no risk. B: A party who terminates a forward contract early must make a cash payment. C: Early termination through an offsetting transaction with the original counterparty eliminates default risk.