In a "total return swap" the asset might be a:
I. common stock
II. loan
III. commodity
IV. market index
A) I and II only
B) I, II and III only
C) I, II, III and IV
D) IV only

Question

Quizplus · Accepted Answer

A total return swap can involve any type of underlying asset that generates a return, including common stocks, loans, commodities, and market indices. Therefore, all options presented in the question (I, II, III, and IV) could be used as the underlying asset in a total return swap.

In a "Total Return Swap" the Asset Might Be A