Question #61
Reading: Reading 30 Pricing and Valuation of Forward Commitments
PDF File: Reading 30 Pricing and Valuation of Forward Commitments.pdf
Page: 25
Status: Unattempted
Correct Answer: A
Question
In which type of swap contract is notional principal most likely to be exchanged at initiation?
Answer Choices:
A. Currency swap
B. Equity swap
C. Interest rate swap
Explanation
Notional principal is typically exchanged at initiation of a currency swap, but not in an
interest rate swap or equity swap.