A British firm and a U.S. Corporation each wish to enter into a currency swap hedging agreement
The British firm is receiving U.S. dollars from sales in the U.S. but wants pounds. The U.S. firm is receiving pounds from sales in Britain but wants dollars. Which of the following choices would best satisfy the desires of the firms?
A) The British firm pays dollars to a swap dealer and receives pounds from the dealer. The U.S. firm pays pounds to the swap dealer and receives dollars.
B) The U.S. firm pays dollars to a swap dealer and receives pounds from the dealer. The British firm pays pounds to the swap dealer and receives dollars.
C) The British firm pays pounds to a swap dealer and receives pounds from the dealer. The U.S. firm pays dollars to the swap dealer and receives dollars.
D) The British firm pays dollars to a swap dealer and receives dollars from the dealer. The U.S. firm pays pounds to the swap dealer and receives pounds.
Answer: A
You might also like to view...
All of the following are causes of escalation of commitment EXCEPT ______.
A. risky shift B. want to justify earlier choices C. overconfidence D. lack of confidence
The product life cycle is divided into four major stages. These are
A. concept introduction, market decline, market maturity, and sales decline. B. market introduction, market growth, market maturity, and sales decline. C. ideation, market growth, market maturity, and investment decline. D. market penetration, market growth, market maturity, and sales decline. E. market introduction, profit growth, market maturity, and profit decline.
In a credit management program, a retailer generally needs to balance the ability of credit to generate additional revenues against the cost of processing credit payments (including bad debts)
Indicate whether the statement is true or false
Which sentence expresses numbers correctly?? A) ?We adopted Duasong from China when she was 1 year and 2 months old
B) ?For her 50th birthday, Catherine treated herself to a day at a luxury spa. C) When she was 57, Professor Cartwright began her research on anti-viral medicines in Africa.