A currency swap is:
A) Simply a package of currency forward contracts.
B) More transactionally efficient than futures or forwards.
C) More suitable for hedging long-dated foreign exchange exposure.
D) All of the above.
E) a and b only.

Question

Quizplus · Accepted Answer

A currency swap can indeed be viewed as a package of currency forward contracts, offering more transactional efficiency than futures or forwards, and is particularly suitable for hedging long-dated foreign exchange exposure.

A Currency Swap Is