Q$14$

Which one of the following ctatements is correct about the sets of cash plows that are involved in a currency swap between the two parties?

$($a$)$ Initiation of swap $-$ actual exchange of principal $($cash$)$ denominated in different currencies.

During the life of the swap$-$periodic interest $.$ payments that are paid in pull without netting.

Termination of swap $-$ return of principal

$($b$)$ Initiation of swap$-$actual exchange of principal $($cash$)$ denominated in the same currencies.

buring the life of the swap$-$periodic interest payments that are paid in full without netting

$($c$)$ Initiation of swap $-$ actual exchange of principal $($Cash$)$ denominated in different currencies.

buring the life of the swap$-$periodic interest payments where the parties pay the net amount.

Termination of swap $-$ return of the principal

d$)$ Initiation of swap$-$Actual exchange of principel $($cash$)$ denominated in the same currencies

During the life of the swap$-$periodic interest payments where the parties pay the net amount.

Termination of swap $-$ return of the principal