is the idea that even if one party can do everything more efficiently than another, it may still pay each of the parties to specialize in the respective areas in which they are relatively more efficient (or less inefficient) and then to trade. Comparative advantage Comparative disadvantage Comparative revelations Superior efficiency Question 38 2.5 pts offer financial-planning flexibility. Sweeps Swopes Strikes Swaps Question 39 2.5 pts A swap is for a counterparty if the value of the swap position for that counterparty is positive. in-the-red out-of-the-money at-the-money in-the-money Question 40 2.5 pts In a swaption, the long position in the option has the right, but not the obligation, to enter into a swap in which she receives the fixed cash flows and pays floating. retention payer recelver inception