.The quote for a swap is 4.504.60% for underlying dollar LIBOR. This means the swap bank pays fixed-rate of 4.50% against receiving dollar LIBOR while the swap bank receives fixed-rate of 4.60% against paying dollar LIBOR.

a. True b. False

A U.S. firm has a 100,000 receivable with a 3-month maturity. To hedge the receivable, it will take a shortposition in a forward contract.

a. True b. False

You entered into a futures contract to buy 10,000 at $1.60/. Your initial performance bond is $2,000 while your maintenance bond is $1,000. You will get a demand for additional funds at $1.50.

a. True b. False