A Difference Payment Refers to

question 34

Multiple Choice

A difference payment refers to

• A) the different notional principal amounts on the two sides of a swap.
• B) the change in margin account due to daily marking to market on a futures position.
• C) the amount an option is in the money.
• D) the net payment amount on a collar.
• E) the net amount owed on a swap payment date between the swap parties.

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Definitions:

Reliabilities

Reliability refers to the consistency and dependability of a system or process to perform its intended function under specified conditions over a certain period.