Which of the Following Describes a 3-Month Overnight Indexed Swap

question 20

Multiple Choice

Which of the following describes a 3-month overnight indexed swap (OIS) ?

• A) A fixed rate is exchanged for the overnight rate every day for three months
• B) LIBOR is exchanged for the overnight rate every day for three months
• C) The arithmetic average of overnight rates is exchanged for a fixed rate at the end of three months
• D) The geometric average of overnight rates is exchanged for a fixed rate at the end of three months

---

Definitions:

Lice

Parasitic insects that infest the hair and skin of humans and animals, causing itching and discomfort.

Direct Transfer

A method of electronically moving funds from one account to another without the need for paper checks or cash handling.

Indirect Contact

The spread of disease through touching surfaces or objects contaminated by an infected person, instead of direct physical contact.

Pinworms

Small, parasitic worms that infect the intestines, especially in children, causing itching and discomfort around the anus.