A Swap Is

question 96

Multiple Choice

A swap is

• A)another name for a put option.
• B)another name for a call option.
• C)an agreement between two or more persons to exchange sets of cash flows over some future period.
• D)the name for the replacement of a futures contract by an options contract.

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Definitions:

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.

Salaries Payable

A liability account representing the amount of wages owed to employees for work performed but not yet paid.

Liability Account

A financial accounting term representing the debts or obligations of a company incurred during business operations.

Asset Account

An account on a company's balance sheet that represents the value of all assets that the company owns.