Which of the Following Statements Is True

question 11

Multiple Choice

Which of the following statements is true?

• A)Total return swaps are typically structured in a way that any capital gains or losses are paid at the end of the swap and alternative arrangements do not exist.
• B)Total return swaps are typically structured in a way that any capital gains or losses are paid at the end of the swap, but alternative arrangements exist.
• C)Pure credit swaps are typically structured in a way that any capital gains or losses are paid at the end of the swap and alternative arrangements do not exist.
• D)Pure credit swaps are typically structured in a way that any capital gains or losses are paid at the end of the swap, but alternative arrangements exist.

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Definitions:

Goods

Objects or materials that are produced for sale or exchange in the market, generally physical and tangible in nature.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against them.

Rescission

The revocation, cancellation, or repeal of a contract, returning the parties involved to their positions before the contract was made.

Contract of Adhesion

A standard-form contract prepared by one party to be signed by another party in a position of weaker bargaining power, often not negotiable.