A swap is
A) another name for a put option.
B) another name for a call option.
C) an agreement between two or more persons to exchange sets of cash flows over some future period.
D) the name for the replacement of a futures contract by an options contract.
C
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When duopoly games are repeated and a "tit for tat" strategy is used,
A) the competitive outcome is more likely to be reached than when the game is played once. B) the monopoly outcome is more likely to be reached than when the game is played once. C) both firms begin to incur economic losses. D) one firm goes out of business. E) Because the game is repeated, it is impossible to predict whether the competitive or the monopoly outcome is more likely.
In the short run, a perfectly competitive firm NEVER
A) earns an economic profit. B) incurs a loss greater than its total fixed costs. C) produces where MR = MC. D) earns a normal profit.