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Question
Suppose a U.S. bank borrows money in London while a British company borrows money in New York. At the end of the loan period the U.S. company needs pounds to repay their loan and the British company needs dollars to repay their loan. Which of the following might be a good tool for these companies to reduce their currency risk?
A. Currency futures contract
B. Currency option contract
C. Interest rate futures contract
D. Interest rate swap contract
E. Currency swap contract
Answer
This answer is hidden. It contains 1 characters.
Related questions
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