Alternative Investments Quiz #2

Which of the following is true: a) A back-to-back transaction is also known as a matched book transaction. b) The interest swap rate is a weighted average of implied spot interest rates. c) A single-payment swap is the same thing as a cash-settled futures contract.


b should be forward rates … a is true, dealer bears credit risk but not price risk

A Very good question…c) cash-settled forward contract.

Answer is A