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Which of the following statements is NOT correct? a. Cash flows on forward contracts and swaps are symmetric. b. Swaps also have a longer maturity
Which of the following statements is NOT correct?
a.
Cash flows on forward contracts and swaps are symmetric.
b.
Swaps also have a longer maturity than any other instruments.
c.
The transactions cost is generally highest for the option.
d.
The transactions cost is generally lowest for the forward contract.
e.
Swap provides FIs with a hedge instrument that is attractive, but more costly than separate forward contracts.
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