Difference between a swap and a forward contract

Assignment Help Financial Accounting
Reference no: EM132986425

Question - What is the difference between a swap and a forward contract?

A. The size of a forward contract is often greater than that of a swap.

B. A forward contract is a one-time transaction. A swap involves a sequence of transactions.

C. Forward contracts are for individuals but swaps are used mostly by institutions.

Reference no: EM132986425

Questions Cloud

What is the charitable contribution deduction : Dividends from 20 percent owned domestic corporations $60,000 and Miscellaneous expenses $250,000. What is the charitable contribution deduction
Summarize the key financial statements used in a business : Summarize the key financial statements used in a business organization. Explain three to five key financial ratios used to analyze a company.
What will be the net interest return on assets : Newcastle Temporary Bank recently made a one-year NZD$10 million loan that pays 10 percent interest annually. What will be the net interest return on assets
What is jack adjusted gross income : What is Jack's adjusted gross income? Jack received $172,500 of salary and paid $5,000 of interest on loans used to pay qualified tuition costs for dependent
Difference between a swap and a forward contract : What is the difference between a swap and a forward contract? A forward contract is a one-time transaction. A swap involves a sequence of transactions
What would be the price of? solarpower common? stock : If the? investor's required rate of return for? Solarpower's stock is 15 percent?, what would be the price of? Solarpower's common? stock?
Calculate the present value of these cash flows : Calculate the present value of these cash flows at the end of year 0, assuming a discount rate of 10% and a 3% constant growth rate for the perpetuity
Prepare statement of comprehensive income for style ltd : Interest on the loan is capitalised. Prepare the statement of profit or loss and other comprehensive income for Style Ltd for the year ended 30 June 2020.
What should be reported as carrying amount : What should be reported as carrying amount of the machine and deferred income, respectively on December 31, 2021

Reviews

Write a Review

Financial Accounting Questions & Answers

  Identify and value the non-operating assets of the firm

Identify and value the non-operating assets of the firm as of 1995 and List and value the debt items of the firm as of 1995

  What is the NPV of this investment

An investment requires 25,000 today, and produces the first cash flow of 1700 in two years. What is the NPV of this investment if the discount rate is 10%

  What amount of gain or loss would have been reported

What amount of gain or loss would have been reported if the pollution control equipment had been expensed in 2016

  Discuss light of understanding of wealth maximization

Does having excess amounts of cash means that the firm has maximized wealthy? Discuss light of understanding of wealth maximization

  Which the most commonly cited reason for leasing is that

Which the most commonly cited reason for leasing is that? it reduces the uncertainty associated with the residual value of the leased asset

  Calculate the depreciation expense

Ac9-K2b Company purchased a piece of equipment on January 1, 2028 January 1, 2028 for $352,000. Calculate the depreciation expense

  Total amount of variable costs related to the units sold

If 14,500 units are sold, what is the total amount of variable costs related to the units sold? If 10,000 units are produced, what is the average fixed manufacturing cost per unit produced? If 14,500 units are produced, what is the total amount of fi..

  Illustrate what does arnold record as the cost of new truck

The truck's annual license is $120. The truck undergoes safety testing for $220. Illustrate what does Arnold record as the cost of the new truck?

  What adjustment will have to be made at end of the period

If the allowance for doubtful accounts before any necessary adjustment is at $10,000, what adjustment will have to be made at the end of the period?

  What aspect of investing interests dana

What aspect of investing interests Dana? Dana Smith has received a $12,000 gift from her mother and is trying to decide how to invest it.

  Changing the break-even point as determined in part

Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. a. How many patient days does the hospital need to break even? b. What level of revenue is needed to earn a ta..

  Calculate basic eps for year seven

Calculate basic EPS for Year 7. Throughout Year 7, Bob the Builder has 400,000 common shares outstanding (no preferred shares issued or outstanding).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd