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pattytcakes pattytcakes
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A year ago
A swap is a method used to reduce financial risk. Which statement about swaps is correct?


▸

A swap involves the exchange of cash payment obligations only on the expiration date of the contract.



▸

The earliest swaps were plain vanilla interest rate swaps in which companies traded debt denominated in different currencies, for example dollars and pounds.



▸

Swaps are very often arranged by a financial intermediary, which may or may not take the position of one of the counterparties.



▸

A problem with swaps is the short maturities, which has prevented the development of a secondary market.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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traumajefftraumajeff
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A year ago
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