How can one use a currency swap to hedge currency risk?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:09 AM

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Explain how a company might use a currency swap to hedge its foreign exchange risk on a foreign currency borrowing.
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How can one use a currency swap to hedge currency risk?

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A currency swap can be a cost efficient way of hedging currency risk Suppose a US company wants to i...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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