Which of the following is not a problem with an interest rate forward contract?

Related MCQs

• Futures contracts are more successful than interest rate forward contracts because they :
• A swap where interest rate risk can be shifted byconverting floating rate liability or vice versa
• A fixed-for-floating interest rate swap with the floating rate leg tied to an index of daily interbank rates or overnight
• A disadvantage of a forward contract is that
• A swap deal wherein floating rate payer pays the floating rate square or cubic or any power of the rate to the counter party
• The main reason to buy an option on a futures contract rather than the futures contract is
• If you sold a short contract on financial futures you hope interest rates
• Swaps whose notional accretes when a certain floating rate,often a different rate from the one used to pay,lies within a range.
• Forward contracts are risky because they
• The contract which gives the buyer the right but not obligation