What Is the Primary Difference Between a Swap Contract and a Forward

question 262

Multiple Choice

What is the primary difference between a swap contract and a forward contract?

• A) The underlying asset.
• B) The number of exchanges.
• C) Daily marking to the market.
• D) A swap is an option while a forward contract is an obligation.
• E) Payment on a swap is made at the time of the agreement while payment is made on the settlement date for a forward contract.

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