Swaps create value if
A)relative prices differ across markets.
B)there are barriers to entry in some markets.
C)information is costly.
D)All of the above.
E)None of the above.

Question

Quizplus · Accepted Answer

Swaps have the potential to create value if there are differences in relative prices across markets, barriers to entry exist in some markets, and information is costly. In such scenarios, swaps can help to mitigate risks, optimize resources and improve efficiency, leading to value creation.

Swaps Create Value If