Which of the Following Is a Five-Year Interest Rate Swap

question 12

Multiple Choice

Which of the following is a five-year interest rate swap that can be canceled at the two year point?

• A) The difference between two plain vanilla interest rate swaps
• B) The difference between a plain vanilla interest rate swap and a forward start swap
• C) A regular interest rate swap plus a European swap option
• D) A regular interest rate swap plus a Bermudan swap option

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