Firm is earning british pounds from its foreign subsidiary

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Reference no: EM131537815

An American firm is earning British pounds from its foreign subsidiary. A British firm is earning dollars from its USA subsidiary. Neither firm can borrow at a cost effective rate outside of its home country/currency. What kind of swap could be used to limit the ForEx risk of both firms and explain the payment flows involved? Give details.

Reference no: EM131537815

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