Credit Risk in the Swap Market

Multiple Choice

Credit risk in the swap market

A) is extensive.
B) is limited to the difference between the values of the fixed rate and floating rate obligations.
C) is equal to the total value of the payments that the floating rate payer was obligated to make.
D) is extensive and equal to the total value of the payments that the floating rate payer was obligated to make.
E) None of the options are correct.