An equity swap is an agreement to

Question

Quizplus · Accepted Answer

An equity swap is an agreement to exchange returns on a specified equity or equity index periodically for a specified stream of returns (e.g., Libor or the return on another equity or equity index). A is incorrect because it refers to a stock swap, not an equity swap. B is incorrect because it refers to exchanging equity for debt, not an equity swap. D is incorrect because it refers to exchanging equity or an equity index for long-dated Treasury debt, not an equity swap.

An Equity Swap Is an Agreement to