Receiver Swaptions Allow a Firm to Receive a Floating Rate

question 55

True/False

Receiver swaptions allow a firm to receive a floating rate.

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Definitions:

Dividends in Arrears

Unpaid dividends on preferred stock that accumulate until paid by the corporation, often before any dividends can be paid on common stock.

Par Value

A nominal or face value assigned to a share of stock, bonds, or other securities as stated in the corporate charter or on the stock certificate.

Dividend Rate

The amount of dividend that a company pays out to its shareholders annually, usually expressed as a percentage of the stock's current market price or as a fixed amount per share.

Authorized Shares

Authorized shares refer to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.