What is a "swap"?
A)A contract in which two parties agree to exchange cash flows (e.g.interest cash flows).
B)A contract in which one party commits upfront to buy or sell commonly traded items at a defined price and maturity date.
C)A contract in which one party commits upfront to buy or sell something at a defined price at a defined future date.
D)A contact that gives the right,but not the obligation,to buy a share at a specified price over a specified period of time.

Question

Quizplus · Accepted Answer

A swap is a financial contract in which two parties agree to exchange cash flows. This can include interest rate cash flows, currency exchange cash flows, or other types of cash flows.

What Is a "Swap