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A swap is a method used to reduce financial risk. The following statements are correct, except : * A company can swap fixed interest payments for...

A swap is a method used to reduce financial risk. The following statements are correct, except:  


* A company can swap fixed interest payments for floating interest payments.


*A problem with swaps is that no standardized contracts exist, which has prevented the development of a secondary market.


*Swaps are very often arranged by a financial intermediary, who may or may not take the position of one of the counterparties.


*The earliest swaps were currency swaps, in which companies traded debt denominated in different currencies, e.g., dollars and yen.


*None of the above

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Option B :- A problem with swaps is that no... View the full answer

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*A problem with swaps is that no standardized... View the full answer

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