A Swap Is

question 37

Multiple Choice

A swap is

• A) another name for a put option.
• B) another name for a call option.
• C) an agreement between two or more counterparties to exchange sets of cash flows over some future period.
• D) the name for the replacement of a futures contract by an options contract.

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Definitions:

Percent Less

A term indicating a reduction or discount expressed as a percentage of the original price or value.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Nickel Content

The proportion or percentage of nickel present within a material or alloy.

Scrap Steel

Discarded steel material that can be recycled and used in new steel production.