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

question 5

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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