Question: A Company located in Australia issues short-term notes in the Frankfurt market to raise Euros and simultaneously spends these euros in Portugal to fund its

A Company located in Australia issues short-term notes in the Frankfurt market to raise Euros and simultaneously spends these euros in Portugal to fund its operations resulting in the following major risk(s).

A) interest-rate risk and foreign currency risk.

B) interest rate risk only

C) foreign currency risk only.

D) interest-rate risk and operational risk.

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