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Cross Currency Swaps Typically Have Larger Swings in Total Value

Question 18

Multiple Choice

Cross currency swaps typically have larger swings in total value than "plain vanilla" interest rate swaps because


A) cross currency swaps exchange principal as well as interest payments.
B) interest rate movements are more volatile than currency movements.
C) interest rate swap agreements do not allow, contractually, large movements from par.
D) all of the above.

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