An advantage of a swap over futures and options is that
A)they can be written for long periods.
B)they are more liquid.
C)they carry less default risk.
D)there is no need to assess the creditworthiness of participants.

Question

Quizplus · Accepted Answer

Swaps can be customized for long periods, which is a distinct advantage over futures and options that typically have standardized expiration dates. This flexibility allows counterparties in a swap agreement to tailor the duration to meet their specific financial objectives or requirements.

An Advantage of a Swap Over Futures and Options Is