What Is a Swap

question 18

Multiple Choice

What is a swap?

• A)An agreement between two parties to exchange assets or a series of cash flows for a specific period of time at a specified interval.
• B)An agreement between a buyer and a seller at time 0 to exchange a non-standardised asset for cash at some future date.
• C)A contract that gives the holder the right, but not the obligation, to buy or sell the underlying asset at a specified price within a specified period of time.
• D)Trading in securities prior to their actual issue.

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Definitions:

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