The disadvantage of swaps is that ________.
A) they lack liquidity
B) it is easy to arrange for a counterparty
C) they do not have default risk
D) they are costly

Name: The disadvantage of swaps is that ________. A) they lack liquidity B) it is easy to arrange for a counterparty C) they do not have default risk D) they are costly
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Question

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Swaps often lack liquidity compared to other financial instruments, making them harder to offset or eliminate before maturity without incurring significant costs or losses.

The Disadvantage of Swaps Is That ________