What Is a Swap

Multiple Choice

What is a swap?

A) An agreement between two parties to exchange assets or a series of cash flows for a specific period of time at a specified interval.
B) An agreement between a buyer and a seller at time 0 to exchange a nonstandardized asset for cash at some future date.
C) A contract that gives the holder the right, but not the obligation to buy or sell the underlying asset at a specified price within a specified period of time.
D) Trading in securities prior to their actual issue.
E) Contractual commitment to make a loan up to a stated amount at a given interest rate in the future.