How can prime ltd use swaps to hedge the risk

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Problem 1: Assume Prime Ltd is a company that invests in various office property markets in Asia. To fund these property acquisitions, Prime Ltd uses, fixed rate mortgage loans in the currency of the country in which the property was acquired. How can Prime Ltd. use swaps to hedge the risk(s)?

Group of answer choices

Option 1: Exchange fixed for floating interest rates in an interest rate swap

Option 2: Exchange fixed for floating interest rates in a cross-currency swap

Option 3: Exchange fixed for floating interest rates and local to foreign currency in an interest rate swap

Option 4: Exchange fixed for floating interest rates and local to foreign currency in a cross-currency swap

Reference no: EM132921288

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