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Which of the Below Represents the "Risk / Return Profile

Name: Which of the below represents the "Risk / Return Profile of Counterparties to an Interest Rate Swap"?
Brand: Quizplus
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Question 1

Multiple Choice

Which of the below represents the "Risk / Return Profile of Counterparties to an Interest Rate Swap"?

A) $\begin{array}{lcc} & \text { Interest Rates Decrease } & \text { Interest Rates Increase } \\\text { Floating-rate payer: } & \text { Gain } & \text { Gain } \\\text { Fixed-rate payer: } & \text { Loss } & \text { Loss }\end{array}$

B) $\begin{array}{lcc} & \text { Interest Rates Decrease } & \text { Interest Rates Increase } \\\text { Floating-rate payer: } & \text { Gain } & \text { Loss } \\\text { Fixed-rate payer: } & \text { Loss } & \text { Gain }\end{array}$

C) $\begin{array}{lcc} & \text { Interest Rates Decrease } & \text { Interest Rates Increase } \\ \text { Floating-rate payer: } & \text { Loss } & \text { Loss } \\\text { Fixed-rate payer: } & \text { Gain } & \text { Gain }\end{array}$

D) $\begin{array}{lcc} & \text { Interest Rates Decrease } & \text { Interest Rates Increase } \\\text { Floating-rate payer: } & \text { Loss } & \text { Gain } \\\text { Fixed-rate payer: } & \text { Gain } & \text { Loss }\end{array}$