What is a currency swap an example of?
A)A futures contract.
B)A call option.
C)A forward contract.
D)A derivative instrument.

Question

Quizplus · Accepted Answer

A currency swap is a type of derivative instrument, as it is a contractual agreement between two parties to exchange a series of cash flows in different currencies. It is not a futures contract or a call option, although it shares some similarities with a forward contract, which also involves an agreement to exchange currencies at a future date.

What Is a Currency Swap an Example Of