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Euro Credits Feature Rollover Pricing

Question 52

Multiple Choice

Euro credits feature rollover pricing.


A) Rollover pricing was created on Euro credits so that Euro banks do not end up paying more on Euro currency time deposits than they earn from the loans.
B) Because of the rollover pricing feature,a Euro credit may be viewed as a series of shorter-term loans,where at the end of each time period (generally three or six months) ,the loan is rolled over and the base lending rate is repriced to current LIBOR over the next time interval of the loan.
C) The lending rate on these Euro credits is stated as LIBOR + X percent,where X is the lending margin charged depending upon the credit worthiness of the borrower.LIBOR is reset according to a set schedule.
D) all of the options

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