Which of the Following Is Not a Similarity Among Interest

Multiple Choice

Which of the following is not a similarity among interest rate swaps, financial futures and FRAs.

A) Each contract allows managers to alter a bank's interest rate risk exposure.
B) None of the contracts require much of an initial cash commitment.
C) Each contract provides for cash receipts or payments depending on how interest rates move.
D) Parties negotiate the notional principal amounts for each contract.
E) All of the above are similarities among interest rate swaps, financial futures and FRAs.