Which of the following is not an advantage of the swap market over the futures market for managing interest rate risk?
A)Getting out of a contract is easier in the swap market.
B)With a swap contract, you can hedge away longer-term risks than with futures contracts.
C)The notional amount of the swap can be set to any value acceptable to both trading parties.
D)All of the above are advantages of the swap market over the futures market.
E)a.and c.are not advantages of the swap market over the futures market.

Question

Quizplus · Accepted Answer

In the swap market, getting out of a contract is generally more complex than in the futures market, where contracts are standardized and can be easily traded on exchanges.

Which of the Following Is Not an Advantage of the Swap