Need answer for 6th questionReceive floatingvolatility during ASelectedperiod aPay foxed volatityduring aFixed volatility andnominal value of thecontract decide hereFigure 2 is an example ofa) payment contingent on defaultb) volatility swap.FX swapsd) Equity swapsQuestion 66.) The instrument in figure 2 exchanges cash flows with differentcharacteristicsa) Currencyb) VolatilityInterest rated) Credit rating

Figure 2 is an example of Volatility Swap.

Answered: Question 6 6.) The instrument in figure…

Question 6 6.) The instrument in figure 2 exchanges cash flows with different .characteristics O a) Currency Ob) Volatility Oc Iinterest rate O d) Credit rating.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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