What are the determinants of the value of a currency swap as time evolves? Is it possible to close out a swap before it has reached maturity?
What will be an ideal response?
When a swap is initiated, the cash flows of two bonds in different currencies are agreed to be exchanged. These bond-like cash flows have the same present value at the current spot exchange rate. Changes in the exchange rate obviously change the value of one side of the swap compared to the value of the other side of the swap. In addition, increases in interest rates decrease the present value of cash flows, and decreases in interest rates increase the present value of cash flows. Thus, changes in interest rates and exchange rates give currency swaps value. One side wins and the other loses. It is possible to close out a swap by having the party that has lost money in the swap pay this value to the party that has gained value in the swap.
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What will be an ideal response?
Under the intermediate scrutiny test, a court must determine whether the government classification is reasonably related to a legitimate government purpose.
Answer the following statement true (T) or false (F)
A marketing channel that consists of one or more intermediaries is known as a(n) ________ marketing channel
A) cyclic B) upstream C) looped D) direct E) indirect
Direct and digital marketing involve targeting broad segments of customers
Indicate whether the statement is true or false