A swap can be terminated by having the party owing the greater amount make a cash payment.

Name: A swap can be terminated by having the party owing the greater amount make a cash payment.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is commonly known as a termination payment and can be used to terminate a swap before its original expiration date. The party owing the greater amount would make a cash payment to the other party to eliminate the remaining obligations of the swap.

A Swap Can Be Terminated by Having the Party Owing