The writer of a payer swaption has: the right to enter a swap in the future as t
ID: 2790198 • Letter: T
Question
The writer of a payer swaption has:
the right to enter a swap in the future as the floating-rate payer.
the right to enter a swap in the future as the fixed-rate payer.
an obligation to enter a swap in the future as the floating-rate payer.
an obligation to enter a swap in the future as the fixed-rate payer.
A.the right to enter a swap in the future as the floating-rate payer.
B.the right to enter a swap in the future as the fixed-rate payer.
C.an obligation to enter a swap in the future as the floating-rate payer.
D.an obligation to enter a swap in the future as the fixed-rate payer.
Explanation / Answer
an obligation to enter a swap in the future as the fixed-rate payer.
the buyer pays a fixed rate
an obligation to enter a swap in the future as the fixed-rate payer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.