In the derivative markets a swap is:Question 10Select one:a.another name for a call option.b.another name for a put option.c.an agreement between two or more persons to exchange cash flows over some future period.d.the name for the exchange of a futures contract for an option contract.

What is a swap?*1 pointa) A contract to exchange currencies at a fixed exchange rateb) A contract to exchange stocks at a predetermined pricec) A contract to exchange assets or liabilities with another partyd) A contract to exchange commodities at a future date

What is swap space? Explain.

A swap deal is executed by:Select one:a.Settling the difference int he ratesb.Actual delivery of currenciesc.Entering into another swap deald.None of the above

What is an interest rate swap, and how does it function as a financial instrument?

An options contract:Question 2Select one:a.is another name for a forward contract.b.gives the right to buy or sell an underlying asset at a predetermined price by a specified time.c.may be written for debt securities but not equities.d.may be written for equities but not debt securities.