The reason for corporations to engage in swaptions or need to engage in a swap option in a future date to ___________________. * a. speculate on the loss of value of the underlying asset b. protect them from adverse movements in the interest rates c. hedge against unfavorable exchange rate of currencies d. can be all of the above

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 25P
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The reason for corporations to engage in swaptions or need to engage in a swap option in a future date to ___________________. *

a. speculate on the loss of value of the underlying asset
b. protect them from adverse movements in the interest rates
c. hedge against unfavorable exchange rate of currencies
d. can be all of the above

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