A. highly regulated
B. a series of forward contracts
C. the exchange of one asset for another.
HIghly simple…, Give reasons for each option.
Will post the answer…later!
Answer - B.
It’s not highly regulated and it does not require the exchange of one asset for another. A interest rate swap is a good example.
B - It is like a series of forward contracts that expire on each settlement date.
And as per above poster, agree with the process of elimination.
Since not any further answers are expected, it is time to tell the right answer. Gentlemen, you will be glad to hear! you are spot on! Have a snack!