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Which of the Below Statements Is FALSE

Question 25

Multiple Choice

Which of the below statements is FALSE?


A) In a basis rate swap, both parties exchange floating-rate payments based on a different reference rate.
B) A nonconstant maturity swap tied to the CMT is called a Constant Maturity Treasury swap.
C) There are options on interest rate swaps: these swap structures are called swaptions and grant the option buyer the right to enter into an interest rate swap at a future date.
D) There are two types of swaptions -a payer swaption and a receiver swaption.

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