ACI
3I0-012 · Question #320
Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:
The correct answer is B. should make clear their intention to do so when initially negotiating the deal. See the full explanation below for the reasoning.
Question
Principals who enter into an interest rate swap with the intention of shortly afterwards assigning or transferring the swap to a third party:
Options
- Ashould never reveal their future dealing intentions to their counterparties
- Bshould make clear their intention to do so when initially negotiating the deal
- Cshould agree upon the method of assignment before transacting
- Dshould only reveal any such intentions after the confirmations have been exchanged
How the community answered
(26 responses)- A4% (1)
- B73% (19)
- C8% (2)
- D15% (4)
Community Discussion
No community discussion yet for this question.