An Advantage of a Swap Over Futures and Options Is

question 23

Multiple Choice

An advantage of a swap over futures and options is that

• A)they can be written for long periods.
• B)they are more liquid.
• C)they carry less default risk.
• D)there is no need to assess the creditworthiness of participants.

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Definitions:

Net Operating Income

The profit generated from a company's core business operations, excluding deductions for interest and taxes.

Client-Visits

Meetings or engagements with clients outside or within the company premises to discuss business, services, or products.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.

Manufacturing Overhead

All indirect costs associated with the production process, excluding direct materials and direct labor.