Which One of the Formulae Below Is Correct

question 582

Multiple Choice

Which one of the formulae below is correct?

• A) Long a FRN + pay fixed on a swap = long a synthetic straight bond
• B) Long a FRN + receive floating on a swap = long a synthetic straight bond
• C) Long a FRN + pay floating on a swap = short a synthetic straight bond
• D) Long a FRN + pay floating on a swap = long a synthetic straight bond.

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Definitions:

Simplified Expression

A mathematical expression that has been reduced to its most basic form, eliminating any unnecessary complexity.

Algebraic Expression

An expression in mathematics that includes regular numbers, variables such as x or y, and operations such as addition, subtraction, multiplication, and division.

Algebraic Expression

An expression built from constants, variables, and algebraic operations (such as addition, subtraction, multiplication, and division).

Values

Numerical quantities assigned to variables or outcomes in mathematical expressions, calculations, or measurements.