Multiple Choice
Which of the following statements regarding a cross-currency swap is incorrect?
A) There is an exchange of principal amounts between counterparties at the beginning and end of the swap.
B) The re-exchange at the conclusion of a cross-currency swap usually takes place at the initial exchange rate.
C) As the cross-currency swap is arranged through a bank, there is no credit risk.
D) Once the cross-currency swap rate is determined, cash flows are known with certainty.
Correct Answer:
Verified
Correct Answer:
Verified
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