A Commodity Swap Is (Typically)

question 14

Multiple Choice

A commodity swap is (typically)

• A) An agreement to exchange one commodity for another.
• B) An agreement to exchange the price on one commodity for a fixed amount on future dates.
• C) An agreement to exchange the return on one commodity for a fixed amount on future dates.
• D) A series of forward contracts on commodities at different forward prices.

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Definitions:

Explananda

Phenomena or facts that are explained within the context of scientific or philosophical inquiry.

Hypothesis

The proposition (or propositions) in an explanation that purport to show why another proposition (the explanandum) is true.

Propositions

Statements or assertions put forward in debate or argument, characterized by their ability to be true or false.

Explanandum

The phenomenon or event that is explained by a scientific theory or investigation.