Which of the Below Statements Is TRUE

question 64

Multiple Choice

Which of the below statements is TRUE?

• A) The convention that has evolved for quoting swaps levels is for a swap dealer to set the floating rate greater than the index and then quote the fixed rate that will apply.
• B) The swap spread is determined by different factors than what drive the spread over Treasuries on instruments that replicate a swap's cash flows.
• C) Given that a swap is not a package of futures/forward contracts, the shorter-term swap spreads respond directly to fluctuations in Eurodollar CD futures prices.
• D) There are three general types of transactions in the secondary market for swaps. These include (1) a swap reversal, (2) a swap sale (or assignment), and (3) a swap buy-back (or close-out or cancellation).

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Definitions:

Palliative Care

Specialized medical care focused on providing relief from the symptoms and stress of a serious illness, aiming to improve quality of life for both the patient and the family.

Life-Threatening Illness

A severe health condition that has a substantial impact on one's life and may result in death if not properly treated.

Imminent Death

A state suggesting that death is likely to occur soon, often used in the context of end-of-life care.

Terminally Ill Children

Refers to children who have an illness that is expected to lead to death.