Which of the Following Is the Best Definition of Swaps

question 206

Multiple Choice

Which of the following is the best definition of Swaps.

• A) A call or put option that can be exercised on or before its expiration date.
• B) The condition stating that the expected percentage change in the exchange rate is equal to the difference in interest rates.
• C) The condition stating that the current forward rate is an unbiased predictor of the future exchange rate.
• D) Agreements to exchange two securities or currencies.
• E) An agreement to trade currencies based on the exchange rate today for settlement in two days.

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Definitions:

Public Notices

Official announcements or statements issued by the government or other authorities to inform the public about legal or official matters.

Separated

The state of being divided or kept apart from others, can apply to objects, people, or groups within a society.

Arduous Tasks

Activities or jobs that are extremely difficult, requiring a lot of effort and perseverance to complete.

Enslaved Women

Women who were subjected to slavery, deprived of personal freedom and forced to perform labor or services against their will, historically and across various cultures.