Consider a Fixed-For-Floating US Dollar-Korean Won Currency Swap in Which

question 14

Multiple Choice

Consider a fixed-for-floating US dollar-Korean won currency swap in which an investor pays USD floating and receiving KRW fixed.From a cash-flow perspective,the swap is equivalent to a situation in which

• A)The investor has received a KRW fixed-rate loan and made a USD floating-rate loan.
• B)The investor has borrowed floating-rate USD and loaned KRW fixed-rate.
• C)The investor is short a USD floating rate loan and long a KRW fixed-rate borrowing.
• D)The investor has entered into a back-to-back loan agreement with his counterparty with fixed rates on both loans.

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