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