Response to the following :
Explain whether you agree or disagree with the following statement: "A currency swap is a redundant financial instrument since a bond issuer can accomplish the same hedging objective with a series of foreign currency forward contracts that settle on the date that a bond payment must be made."
A financial manager seeks to hedge the currency risk of a transaction to take place three years from now. Explain whether the financial manager can use a currency futures contract to protect against the currency risk.