Solved

Which of the Following Is Not an Advantage of the Swap

Question 12

Multiple Choice

Which of the following is not an advantage of the swap market over the futures market for managing interest rate risk?


A) Getting out of a contract is easier in the swap market.
B) With a swap contract, you can hedge away longer-term risks than with futures contracts.
C) The notional amount of the swap can be set to any value acceptable to both trading parties.
D) All of the above are advantages of the swap market over the futures market.
E) a.and c.are not advantages of the swap market over the futures market.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions