If you have created a 'synthetic asset' by buying and selling a USD/CHF swap, what have you done?
A) Created an exposure to the CHF
B) Created an exposure to the USD
C) Switched a CI-IF asset temporarily into USD without taking currency risk
D) Switched a USD asset temporarily into CHF without taking currency risk

Question

Quizplus · Accepted Answer

By using a USD/CHF swap, you have effectively exchanged a CHF asset for a USD asset temporarily, without taking on currency risk, as the swap agreement typically involves exchanging principal and interest payments in one currency for those in another.

If You Have Created a 'Synthetic Asset' by Buying and Selling