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Which of the Following Statements Is True

Question 30

Multiple Choice

Which of the following statements is true?


A) The reason why in a currency swap it is usual to include both principal and interest payments as part of the swap agreement is that both principal and interest are exposed to foreign exchange risk.
B) In a currency swap it is usual to include both principal and interest payments as part of the swap agreement as this makes the currency conversion less complex.
C) In a currency swap it is usual to include both principal and interest payments as part of the swap agreement as otherwise it is impossible to value the swap.
D) It is not usual to include both principal and interest payments as part of the swap agreement.

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