In a fixed-for-floating interest rate swap:
A) if the BBSW is lower than expected, the swap develops a positive value for the floating-rate payer
B) if the BBSW is higher than expected, the swap develops a positive value for the floating-rate payer
C) if the BBSW is lower than expected, the swap develops a positive value for the fixed-rate payer
D) if the BBSW is higher than expected, the swap develops a negative value for the fixed-rate payer
E) if the BBSW is higher than the swap rate, the cash settlement is paid by the fixed-rate payer.
Correct Answer:
Verified
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A)The
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A)The exchange of
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