Advise the board on the operation of a sterling

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Background:

Intrepid Plc are proposing to expand their operations to the USA and you as corporate treasurer have been asked to recommend to the board of directors how you might manage the translation risk in the balance sheet and also how Intrepid Plc can utilise currency swaps as a mean of long term hedging.

Question:

Advise the board on the operation of a sterling/US dollar swap and discuss any potential problems or drawbacks in utilising currency swaps.

Reference no: EM132481533

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