Multiple Choice
What is the special feature of an off-market swap arrangement?
A) It involves special nonstandard considerations that must be negotiated between the parties.
B) The swap is used to hedge against exchange rate risk from mismatched currencies on assets and liabilities.
C) It involves additional financing costs resulting from the fixed-fixed currency swap.
D) It involves an obligation to pay interest at a fixed or floating rate for payments representing the total return on a specified amount.
E) FI receives the par value of the loan on default in return for paying a periodic swap fee.
Correct Answer:
Verified
Correct Answer:
Verified
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