Which of the Following Is Not True of Hedged Cross-Currency

question 1

Multiple Choice

Which of the following is not true of hedged cross-currency equity swaps?

• A)The hedged-cross currency equity swap pre-specifies a fixed exchange rate at which all cash flows (including principal)will be converted into the investor's currency.
• B)The hedged-cross currency equity swap pre-specifies a fixed exchange rate at which all cash flows (except the principal)will be converted into the investor's currency.
• C)In a hedged currency swap,the investor is fully hedged against exchange rate changes.
• D)None of the above.

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Definitions:

Accounts Receivable

Outstanding receivables from clients to a business for supplied products or executed services awaiting payment.

Internal Control

Internal Control encompasses the policies, procedures, and actions implemented by a company to ensure the integrity of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Cost-Benefit

An analysis or approach that compares the costs and benefits of a decision, project, or action to determine its feasibility or profitability.

Internal Control

Strategies and actions taken by a corporation to maintain the accuracy of its financial and accounting records, encourage responsible behavior, and deter dishonesty.