Swaptions Are Like Forward Swaps in Which of the Following

question 20

Multiple Choice

Swaptions are like forward swaps in which of the following ways

• A)Both are free of credit risk
• B)Both require the execution of a swap at expiration
• C)They have the same price
• D)Both are traded on swaption exchanges
• E)none of the above

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Definitions:

Payment

The transfer of money or goods in exchange for a product or service.