Which of the following would be referred to as an equity swap? choose one)
A) An exchange of the return from an equity index for a fixed or floating rate of interest.
B) An exchange of a long position in one stock for a long position in another stock.
C) An exchange of a short position in one stock for a short position in another stock.
D) None of the above.

Question

Quizplus · Accepted Answer

An equity swap typically involves the exchange of the return from an equity index for a fixed or floating rate of interest, allowing parties to swap their exposure to equity markets for interest rate exposure, or vice versa.

Which of the Following Would Be Referred to as an Equity