Grift Co is based in a country whose currency is the dollar (\$). The company has legal expenses in a forelgn country, Farnland, whose currency is the peso. These legal expenses of 26 million pesos must be paid within the next six months. Exchange rates available to the company are as follows: The pesoldollar exchange rate has been volatile recently and the finance director of Grift C0 is wondering whether a lead payment might be better than hedging the payment of legal expenses with a six-month forward oxchange contract. Grift Co has bank loans in the foreign country with a nominal value of 500 million pesos that are split equally between fixed rate and variable rate debt. The company has no assets generating interest rate income. The finance director is concerned about the interest rate risk associated with these bank loans. Which of the following statements about interest rate derivatives is correct? Over-the-counter interest rate options have standardised quarterly settement dates Interest rate futures contracts protects a borrower from an interest rate increase, while allowing the benefit of a lower interest rate to be obtained A swap which exchanges fixed rate and variable rate interest in the same currency should give benefit to both counterparties An interest rate collar is created by selling a cap and selling a floor Grift Co is based in a country whose currency is the dollar (\$). The company has legal expenses in a forelgn country, Farnland, whose currency is the peso. These legal expenses of 26 million pesos must be paid within the next six months. Exchange rates available to the company are as follows: The pesoldollar exchange rate has been volatile recently and the finance director of Grift C0 is wondering whether a lead payment might be better than hedging the payment of legal expenses with a six-month forward oxchange contract. Grift Co has bank loans in the foreign country with a nominal value of 500 million pesos that are split equally between fixed rate and variable rate debt. The company has no assets generating interest rate income. The finance director is concerned about the interest rate risk associated with these bank loans. Which of the following statements about interest rate derivatives is correct? Over-the-counter interest rate options have standardised quarterly settement dates Interest rate futures contracts protects a borrower from an interest rate increase, while allowing the benefit of a lower interest rate to be obtained A swap which exchanges fixed rate and variable rate interest in the same currency should give benefit to both counterparties An interest rate collar is created by selling a cap and selling a floor