A swap contract is defined as an agreement between two parties to exchange:
A) Specified cash flows at specified intervals in the future.
B) A predetermined quantity of a financial asset at a predetermined price on a specified date.
C) An agreed upon amount of a financial asset for cash at a specified rate on a specified date.
D) Goods on a future specified date with the quantity and price determined today.
E) Financial assets, at the option of the buyer, on a specified date at the price determined today.

Question

Quizplus · Accepted Answer

Swap contracts involve the exchange of specified cash flows between two parties at predetermined intervals, not the exchange of physical goods or the option to exchange assets at a future date.

A Swap Contract Is Defined as an Agreement Between Two