There are several different types of derivative securities including forwards, futures, swaps, inverse floaters, and structured notes. These securities may be used to manage the risks of business organizations or to speculate on certain market events. Consider the descriptions or characteristics in the following table and indicate the type of derivative to which each corresponds: Type of Derivative Description or Characteristic This type of derivative security involves the exchange of the principal and Interest rate swap interest payments of one borrower's loan, denominated in one currency, for the Currency swap principal and interest payments owed by a counterparty, denominated in Inverse floater another currency This type of debt security has a value that is derived from the value of another debt security, such as a collateralized mortgage obligation (CMO) or an interest-only (IO) security This type of derivative security uses the exchange of two streams of interest payments to hedge against unexpected and negative changes in interest rates or to speculate and profit from changes in interest rates. This type of debt security, such as a note or bond, has a coupon that exhibits a opposite relationship with short-term market interest rates