A swap that often involves an up-front fee or payment as compensation for nonstandard terms is
A)a pure credit swap.
B)a total return swap.
C)an off-market swap.
D)a plain vanilla swap.

Question

Quizplus · Accepted Answer

An off-market swap is a type of swap in which the agreed-upon terms, such as the notional amount or interest rate, deviate from market standard terms. As a result, an up-front fee or payment may be required to compensate for the nonstandard terms.

A Swap That Often Involves an Up-Front Fee or Payment