ACI
3I0-012 · Question #112
An Overnight Indexed Swap (OIS) is:
The correct answer is C. A fixed-floating money market swap in which the floating rate is an overnight index compounded daily. See the full explanation below for the reasoning.
Question
An Overnight Indexed Swap (OIS) is:
Options
- AA fixed-floating money market swap in which the floating rate is an overnight index fixed periodically
- BA fixed-floating money market swap in which the floating rate is the mean of the overnight index over
- CA fixed-floating money market swap in which the floating rate is an overnight index compounded daily
- DA floating-for-floating rate swap in different currencies in which both floating rates are overnight indexes
How the community answered
(36 responses)- A6% (2)
- B14% (5)
- C78% (28)
- D3% (1)
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