Which of the following statements is most accurate?

Futures contracts can be customized to suit customer's needs.

Currency swaps do not exchange principals at inception.

Swap contracts are usually exchange traded.

For derivatives trading, over-the-counter market size is larger than exchange-traded market size.

Which of the following statements is most accurate?

The legal agreement of a swap is called a confirmation.

LIBOR/swap zero curve is used for computing notional principal of a swap.

Immediately after an interest payment, the value of the floating-rate bond underlying an interest rate swap drops to zero.

Principals are usually exchanged initially in an interest rate swap.

Someone shorts a call option with a strike price of $10 for $2. What are the maximum gain and maximum loss?

maximum gain is $10, maximum loss is $12.

maximum gain is $8, and there is no limit to maximum loss.

maximum gain is $8, maximum loss is $10.

maximum gain is $2, and there is no limit to maximum loss.