so say,
an international financial institution has primarily variable rate mark denominated assets and long term fixed rate yen denominated liabilities. to protect its net worth, what would be the most appropriate to swap:
a) VR mark liabilities for VR yen liabailities
b) VR yen liabilities for fixed rate yen liabilities
c) fixed rate yen for variable rate yen liabilities
d) VR mark liabilities for fixed rate mark liabilities
e) fixed rate mark liabilities for fixed rate yen liabilities
The answer is C but im not sure how they got it. I was hoping somebody could clear things up for me
Thanks