Explain cross-hedging and why would you use it

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Reference no: EM131548981

1. Explain cross-hedging and why would you use it.

2. Sumitomo Bank wants to expand its lending in the U.S, but to do so it needs to raise more long-term debt capital to help finance these loans. Currently, long term interest rates are 9.5% in the U.S and 6.3% in Japan. How to minimize currency risk?

Reference no: EM131548981

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Explain cross-hedging and why would you use it : Explain cross-hedging and why would you use it. How to minimize currency risk?

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