Multiple Choice
Which one of the formulae below is correct?
A) Long a FRN + pay fixed on a swap = long a synthetic straight bond
B) Long a FRN + receive floating on a swap = long a synthetic straight bond
C) Long a FRN + pay floating on a swap = short a synthetic straight bond
D) Long a FRN + pay floating on a swap = long a synthetic straight bond.
Correct Answer:

Verified
Correct Answer:
Verified
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