Alright, it’s been a long day and I’m starting to lose it. This seems like it should be easy, but I can’t seem to grasp this concept. So answer this question and then explain it to me like I’m the town idiot. Thanks in advance. The fixed-rate payer in an interest-rate swap has a position equivalent to a series of: A) short interest-rate puts and long interest-rate calls. B) long interest-puts and short interest-rate calls. C) long interest-rate puts and calls. D) short interest-rate calls and puts.
Wow, never mind, I just got it. Time for a beer.
A right?
I’m thinking this one is A as well.
definitely A.
Good job, A it is. You clearly aren’t mentally exhausted, so you can’t have a beer yet. Sorry.