Check analytically the equivalence of the two alternative ways to do the following trips: (a) Financing of
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Check analytically the equivalence of the two alternative ways to do the following trips:
(a) Financing of international trade: you currently hold a fc claim on a customer payable at T, but you want cash hc instead.
(b) Domestic deposits: you currently hold spot hc and you want to park that money in hc, risk-free.
(c) You want to borrow hc for 3 months.
(d) Immunizing a hc dent: you want to set aside some of your cash hc so as to take care of a future fc debt.
(e) Borrowing fc. You want to borrow fc but a friend tells you that swapping a hc loan is much cheaper
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Related Book For
International Finance Putting Theory Into Practice
ISBN: 978-0691136677
1st edition
Authors: Piet Sercu
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