In an Interest-Only Currency Swap

question 22

Multiple Choice

In an interest-only currency swap

• A)the counterparties must raise the actual notational principal in their home markets; then exchange it for the foreign currency they desire.They must also hedge with forward contracts on the currency.
• B)the counterparties periodically exchange the amortized portions of the notational principals.
• C)the counterparties must raise the actual notational principal in their home markets; then exchange it for the foreign currency they desire.They must also hedge with forward contracts on the currency.Additionally,the counterparties periodically exchange the amortized portions of the notational principals.
• D)none of the options