Which of the Following Is an Example of a "Swap

question 6

Multiple Choice

Which of the following is an example of a "swap"?

• A)Right to buy 100 shares of CIBC over the next 5 years.
• B)Commitment to buy 100 barrels of oil next month at $125/barrel.
• C)Commitment to buy $100,000 US dollars in 4 months at US$=1.10.
• D)Pay interest at prime +3% in exchange for receiving interest at 5%.

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Definitions:

Low Temperature

A condition where the environment or a specific object has a temperature below the average or expected.

Subduction Zone

A region of Earth's crust where two tectonic plates converge, and one plate is forced underneath the other into the mantle, often leading to volcanic activity and earthquakes.

Accretionary Prism

A wedge-shaped mass of sediment and rock scraped off the top of a downgoing tectonic plate and accreted onto the overriding plate at a convergent plate boundary.

Fold and Thrust Belt

A region in the earth's crust where the rocks have been deformed by horizontal compression, leading to the formation of folds and thrust faults.