Question
A multinational corporation with subsidiaries in
multiple countries is exposed to significant currency risk due to fluctuations in exchange rates. The company's CFO is exploring financial derivatives to mitigate this risk and ensure predictable cash flows. The CFO is particularly interested in a derivative that involves the exchange of principal and interest payments in different currencies, effectively locking in exchange rates and mitigating the impact of currency fluctuations on the company's cash flows. Which specific type of derivative would best suit the CFO's needs?Solution
Currency swaps involve the exchange of principal and interest payments in different currencies, allowing companies to effectively lock in exchange rates and mitigate the impact of currency fluctuations on their cash flows.
Find the code word for ‘thousands’?
In a certain code language, FLOWERS is coded as 216 and METEORS is coded as 90. What is the code of word ‘PROPOSE’ in the same coding language?
Select the option that is related to the third term in the same way as the second term is related to first term and the sixth term is related to the fif...
If all the vowels in the word ‘GRATEFUL’ are changed to the next letter in the English alphabetical order and all the consonants remain the same the...
- If PUNISHED' is coded as '50', 'HAMPER' is coded as '22', then how is 'LOCKET' coded as in the same code language?
Unscramble the following letters to frame a meaningful word, then find out the correct numerical position of the letters:
In certain code language ‘JGTGVKE’ is coded as ‘LEVTXIG’. How will ‘SUMMERS’ be coded in that language?
In a certain code language, 'TREATS' is coded as 'VPHXXO' and 'REGRET' is coded as 'TCJOIP', then 'SINGLE' is coded as ____ in the same code language.
What is the code for ‘hope’?
In a certain language,
'pl zs ls' means 'conspiracy was hatched',
'uq al bg' means 'would replace him'
'bg kr ls' means ‘him as h...