How could LEXCO achieve low-cost financing while eliminating its exposure to exchange rate risk?

One way that LEXCO can achieve low-cost financing while eliminating its exposure to exchange rate risk is through the use of currency swaps. This involves entering into an agreement with a counterparty whereby one side agrees to pay interest on a particular loan denominated in a foreign currency (e.g., US dollars) while the other pays interest in their domestic currency (e.g., euros). The parties then periodically exchange payments based on prevailing exchange rates at the time of each transaction, thus allowing both sides to manage their respective risks without incurring additional costs.

In addition, LEXCO could also look into issuing bonds or other debt instruments which are denominated in multiple currencies as this will help diversify its borrowing base and potentially reduce associated costs. Furthermore, utilizing derivatives such as forwards or options may also provide some protection against unexpected swings in exchange rates; by agreeing to buy or sell specific amounts of foreign currencies at predetermined prices these instruments can be used for hedging purposes without actually having any underlying financial exposure.

By implementing these strategies, LEXCO should be able to secure more affordable financing arrangements while simultaneously mitigating their risk from changes in foreign exchange markets – thereby enabling them to leverage their resources more efficiently and maximize returns over time.