Which of the Following Are Possible Swaps

question 12

Multiple Choice

Which of the following are possible swaps?

• A) Floating-for-floating.
• B) Zero-coupon for floating.
• C) Fixed for floating.
• D) All of these.

---

Definitions:

Foreign Exchange

The exchange of one currency for another or the conversion of one currency into another currency.

Buy And Sell Price

The prices at which a market maker or trader is willing to purchase (buy price) and sell (sell price) a security or commodity.

Big Mac Index

A tool developed by the Economist magazine that demonstrates the over- or undervaluation of a currency as compared to the U.S. dollar using the price of the McDonald’s Big Mac.

Exchange Rate

The rate at which one currency can be exchanged for another, affecting international trade and finance.