What is a mismatch risk (for an IRS)? Select one: The risk that a country will impose exchange rate restrictions that will interfere with performance on the swaps O ii. Interest rates might move against the swap bank after it has only gotten half of a swap on the books, or if it has an unhedged position iii.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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What is a mismatch risk (for an IRS)?
Select one:
i.
The risk that a country will impose exchange rate restrictions that will interfere with performance
on the swaps
ii. Interest rates might move against the swap
bank after it has only gotten half of a swap on
the books, or if it has an unhedged position
ii.
The major risk faced by a swap dealer - the risk that a counter party will default on its end of the
swaps
iv. The risk that it will be difficult to
find counterpart that wants to borrow the right amount of money
for the right amount of time
Transcribed Image Text:What is a mismatch risk (for an IRS)? Select one: i. The risk that a country will impose exchange rate restrictions that will interfere with performance on the swaps ii. Interest rates might move against the swap bank after it has only gotten half of a swap on the books, or if it has an unhedged position ii. The major risk faced by a swap dealer - the risk that a counter party will default on its end of the swaps iv. The risk that it will be difficult to find counterpart that wants to borrow the right amount of money for the right amount of time
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