Examlex

Solved

A Payer Swaption Is Equivalent to Which of the Following

question 45

Multiple Choice

A payer swaption is equivalent to which of the following instruments.


Definitions:

Monthly Payments

Regular payments made towards a loan or mortgage each month.

Compounded Semi-Annually

Calculation of interest on the initial principal and the accumulated interest over the first 6 months repeated every half year.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle that allows for tax-deferred savings towards retirement.

Contributions

Money that individuals or entities provide towards a common pool or fund, often for purposes like retirement savings plans or investment funds.

Related Questions