CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

Which of the following combinations would not be a likely outcome of combining an interest rate swap with a currency swap?
A. A fixed rate in the U. S. dollar swapped for a floating rate in a foreign currency
B. A floating rate in the U. S. dollar swapped for a fixed rate in a foreign currency
C. A fixed rate in the U. S. dollar swapped for a floating rate in the U.S. dollar
Explanation: A fixed rate in the U.S. dollar swapped for a floating rate in the U. S. dollar is just a plain vanilla interest rate swap. Hence, this structure would not involve a currency swap.

User Contributed Comments 1

User Comment
JeffAu This should consider as an easy question instead of medium
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