Multiple Choice
Which combination of the following statements is true about the risks that a swap dealer confronts:
(i) - interest rate risk
(ii) - basis risk
(iii) - exchange rate risk
(iv) - mismatch risk
(v) - sovereign risk
A) (i) , (ii) , (iii) , and (v)
B) (i) , (iii) , and (iv)
C) (iii) , (iv) , and (iv)
D) (i) , (ii) , (iii) , (iv) , and (v)
Correct Answer:

Verified
Correct Answer:
Verified
Q10: Swap bank quotes 5.40-5.70 for the euro.This
Q11: <span class="ql-formula" data-value="\begin{array}{lll}&\text { Fixed-Rate } &
Q12: Which of the following are possible swaps?<br>A)
Q13: Company A swaps fixed-rate US dollar debt
Q14: Canada Corporation enters into a 2-year interest
Q16: <span class="ql-formula" data-value="\begin{array}{lcc} &\text { Canadian interest
Q17: Find the profit of the swap bank
Q18: The primary reasons for a counterparty to
Q19: Examples of "single-currency interest rate swap" and
Q20: Use the following information to calculate