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By entering into a currency swap both parties:?

A. make payments in different currencies and in different notional amounts..

B. have to borrow funds at relatively higher interest rates compared toborrowing directly from their banks.

C. are exposed to less counterparty risk because principal amounts are exchanged at the beginning and end of the swap.

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/09
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

Haytham Ahmed
by Haytham Ahmed , باحث قانونى , Prosecution GENERAL

  I think the correct answer from my point of view is C   

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

A. make payments in different currencies and in different notional amounts.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

C-----------------------------------------------

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