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