Receive floating volatility during a to Selected period a Pay foxed volatility during a Fixed volatility and nominal value of the contract decide here Figure 2 is an example of . .... a.) payment contingent on default b.) volatility swap. c) FX swaps O d.) Equity swaps

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Receive floating
volatility during a
Selected
period a
Pay fixed volatility
during a
Fixed volatility and
nominal value of the
contract decide here
Figure 2 is an example of .
a.) payment contingent on default
b.) volatility swap.
c.) FX swaps
O d.) Equity swaps
Question 6
6.) The instrument in figure 2 exchanges cash flows with different
.....characteristics
a.) Currency
b.) Volatility
c.) Interest rate
d.) Credit rating
Transcribed Image Text:Receive floating volatility during a Selected period a Pay fixed volatility during a Fixed volatility and nominal value of the contract decide here Figure 2 is an example of . a.) payment contingent on default b.) volatility swap. c.) FX swaps O d.) Equity swaps Question 6 6.) The instrument in figure 2 exchanges cash flows with different .....characteristics a.) Currency b.) Volatility c.) Interest rate d.) Credit rating
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