Swaps whose notional accretes when a certain floating rate,often a different rate from the one used to pay,lies within a range.

Related MCQs

• A swap deal wherein floating rate payer pays the floating rate square or cubic or any power of the rate to the counter party
• A fixed-for-floating interest rate swap with the floating rate leg tied to an index of daily interbank rates or overnight
• A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time frame needed of an investor
• The disadvantage of swaps is that they
• A swap where interest rate risk can be shifted byconverting floating rate liability or vice versa
• A swap that pays certain fixed amount if the rate is above or below a certain level.
• A swap that takes into consideration daily variation of market rates within specific range.
• Which measure is used to indicate the maximum loss that an investor could incur on an exposure at a point in time, determined at a certain confidence level.
• The option contract whose underlying asset consist of stock market indices
• ------------ are formed by using the options on the same asset with same strike price but with different expiration dates