All of the following are reasons for engaging in swaptions, which one is not? a. Swaptions are utilized by parties who anticipate the need for a swap at a later date but want to lock in a set rate today while keeping the option of not engaging in the swap later or engaging in the swap at a better market rate. b. Swaptions are used by parties entering into a swap to give them the flexibility to terminate the swap. c. Swaptions are used by parties to speculate on interest rates. d. To create a stream of equivalent payments or annuity on the type of swaption.
All of the following are reasons for engaging in swaptions, which one is not? a. Swaptions are utilized by parties who anticipate the need for a swap at a later date but want to lock in a set rate today while keeping the option of not engaging in the swap later or engaging in the swap at a better market rate. b. Swaptions are used by parties entering into a swap to give them the flexibility to terminate the swap. c. Swaptions are used by parties to speculate on interest rates. d. To create a stream of equivalent payments or annuity on the type of swaption.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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All of the following are reasons for engaging in swaptions, which one is not?
a. Swaptions are utilized by parties who anticipate the need for a swap at a later date but want to lock in a set rate today while keeping the option of not engaging in the swap later or engaging in the swap at a better market rate.
b. Swaptions are used by parties entering into a swap to give them the flexibility to terminate the swap.
c. Swaptions are used by parties to speculate on interest rates.
d. To create a stream of equivalent payments or
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