Question: You are a debt manager for a U . S . - based multinational. You need to borrow 1 0 0 million euros for 5

You are a debt manager for a U.S.-based multinational. You need to borrow 100 million euros for 5 years. You can either borrow the 100 million euros directly in Germany, or borrow dollars in the U.S. and enter into a currency swap with a swap bank. One risk that you face by using a swap that you do not face by borrowing euros directly is... Exchange Rate Risk, Sovereign Risk, Credit Risk, Interest Rate Risk.

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