Question
Which of the following derivative instrument is a type
of financial derivative in which fixed payments of interest are exchanged by two counterparties for floating payments of interest?Solution
A swap is an agreement between two counter parties to exchange cash flows in the future. Under the swap agreement, various terms like the dates when the cash flows are to be paid, the currency in which to be paid and the mode of payment are determined and finalized by the parties. Usually the calculation of cash flows involves the future values of one or more market variables. There are two most popular forms of swap contracts, i.e., interest rate swaps and currency swaps.
Statements:
Some Distance are Miles
All Miles are Race
Some Race are not Time
Conclusion:
I. Some Miles are not Time<...
Statements:
All pearls are diamonds.
All diamonds are gold
All gold are silvers.               Â
Statements: All males are females.
All females are men.
No man is a woman.
All women are Girl...
Statements:
Some diamonds are golds.
Some golds are marbles.
Conclusions:
I. Some diamonds are marbles.
II. Som...
Statements:
All books are pages.
Some notes are books.
All assignments are notes.
Conclusions:
I. At least some p...
Statement:
Only a few Cricket is Kabaddi.
All Cricket is Volleyball.          Â
No Kabaddi is Football.
...Statement:
Only a few Nation are States.
Some States are Country.
At least Country are Capital.
Conclusion:
Some ...
Each option contains some statements. Determine from which statements the given two conclusions follow.
Conclusion:
I. No yearly is m...
Statements:
No Fire is Water.
Some Oil is Sugar.
Only a few Water is Sugar.
Conclusions:
Some Oil can never be Fi...
Read the given statements and conclusion carefully. Assuming the information given in the statement is true, even if it appears to be at variance with ...
