The Advantage of a Rate-Capped Interest Rate Swap (Relative to a Plain

question 37

Multiple Choice

The advantage of a rate-capped interest rate swap (relative to a plain vanilla swap) to the party exchanging fixed payments for floating payments is that

• A) there is a minimum limit set on interest rate payments received.
• B) there is a maximum limit set on the interest payments it will provide.
• C) it receives an up-front fee.
• D) none of the above

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Definitions:

Gender

Refers to the roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Psychopathic Personality Inventory

A self-report scale intended to measure traits associated with psychopathy in non-clinical populations.

Behavioral Analogue Risk Task

A method used in psychological studies to measure an individual's propensity to take risks through simulated real-life situations.

Explanatory Variables

Variables in a statistical model that are thought to explain changes in the response variable.