All of the following are uses of swaptions except
A)to speculate on interest rates
B)to give a firm flexibility in future borrowings
C)to borrow money
D)to create callable from non-callable bonds
E)none of the above

Question

Quizplus · Accepted Answer

Swaptions are not used to borrow money, but rather to provide flexibility in future borrowing or to manage interest rate risk through speculation or the creation of callable bonds.

All of the Following Are Uses of Swaptions Except