What type of swap arrangement is most like an insurance policy?
A)All swap arrangements
B)Fixed-for-floating swap
C)Overnight indexed swaps
D)Cross-currency swaps
E)Credit default swaps

Question

Quizplus · Accepted Answer

Credit default swaps are most like an insurance policy as they allow one party to protect against potential default by another party by receiving compensation in the event of default.

What Type of Swap Arrangement Is Most Like an Insurance