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Which of the Following Describes a 3-Month Overnight Indexed Swap

Question 15

Multiple Choice

Which of the following describes a 3-month overnight indexed swap (OIS) ?


A) A fixed rate is exchanged for the overnight rate every day for three months
B) LIBOR is exchanged for the overnight rate every day for three months
C) The arithmetic average of overnight rates is exchanged for a fixed rate at the end of three months
D) The geometric average of overnight rates is exchanged for a fixed rate at the end of three months

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