Floating-for-floating currency swaps
A)have different reference rates for the different currencies: e.g.dollar LIBOR versus euro LIBOR.
B)do not exist.
C)offer the swap bank a built-in hedge.
D)none of the options

Question

Quizplus · Accepted Answer

Floating-for-floating currency swaps involve exchanging interest payments in different currencies where both sides of the swap are tied to floating interest rates, which can be different for each currency (e.g., dollar LIBOR vs. euro LIBOR).

Floating-For-Floating Currency Swaps