The advantage of over-the-counter products such as swaps or forwards contracts,relative to exchange-traded products such as options or futures,is:

Question

Quizplus · Accepted Answer

Over-the-counter products such as swaps or forwards contracts offer more flexibility compared to exchange-traded products such as options or futures. The terms of the contracts can be customized based on the specific needs of the parties involved.

Note: The given answers are not mutually exclusive, but C is the best choice as it directly addresses the advantages of OTC products.

The Advantage of Over-The-Counter Products Such as Swaps or Forwards