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.

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Definitions:

American Business

Aspects, practices, or characteristics unique to business operations in the United States, covering economic, legal, and sociocultural components.

John F. Kennedy

The 35th President of the United States, known for his contributions to civil rights, space exploration, and international diplomacy.

Consumer Ethics

The moral principles and standards that guide the behavior of individuals as consumers in the marketplace.

Unethical Acts

Behaviors or actions that violate moral or professional principles, often leading to negative consequences for individuals or organizations involved.