Which of the Below Statements Is FALSE

question 44

Multiple Choice

Which of the below statements is FALSE?

• A) In a basis rate swap, both parties exchange floating-rate payments based on a different reference rate.
• B) A nonconstant maturity swap tied to the CMT is called a Constant Maturity Treasury swap.
• C) There are options on interest rate swaps: these swap structures are called swaptions and grant the option buyer the right to enter into an interest rate swap at a future date.
• D) There are two types of swaptions -a payer swaption and a receiver swaption.

---

Definitions:

Overdiagnosis

The diagnosis of a disease or condition that is unlikely to cause harm or symptoms, often leading to unnecessary treatment.

Categorical Approach

A method of classification that involves organizing items, concepts, or phenomena into distinct groups or categories based on shared characteristics.

Psychological Disorders

Psychological disorders are patterns of behavioral, cognitive, or emotional symptoms that significantly impact multiple areas of life, often characterized by distress and impairment in functioning.

Maladaptive Behaviour

Actions or tendencies that are counterproductive to oneself or hinder personal adjustment and well-being.