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Why do arbitrage profits rarely exist in interest rate swap pricing?
Variable Costs
Costs that change in proportion to the level of production or business activity.
Saltwater Taffy
A variety of soft taffy originally produced and marketed in coastal areas, known for its unique texture and array of flavors.
Marginal Cost
The additional cost incurred from producing one more unit of a good or service.
Diminishing Returns
A principle stating that as more of a variable input is added to fixed inputs, the additional output gained from each new unit of input eventually decreases.
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