1.A contract in which one party pays a fixed rate of interest on a notional amount in return for the return on a single stock, paid quarterly for four quarters, is a(n):

A)   plain vanilla swap.

B)   stock swap.

C)   returns swap.

D)   equity swap.

2.When one party pays a fixed rate of interest in an equity swap, which of the following is FALSE?

A)   The equity-return payer will gain if the equity return is zero.

B)   The equity-return payer will receive the fixed-rate minus the equity return.

C)   The fixed-rate receiver will never get more than the fixed rate.

D)   Unlike other swaps, in an equity swap the one-quarter-ahead payment is not known at the end of the previous quarter.

3.An equity swap can specify that one party pay any of the following EXCEPT:

A)   the return on a single stock.

B)   the total return on a stock market index.

C)   the total return on a corporate bond.

D)   the return on a specific portfolio of three stocks including dividends.

答案和详解如下：

1.A contract in which one party pays a fixed rate of interest on a notional amount in return for the return on a single stock, paid quarterly for four quarters, is a(n):

A)   plain vanilla swap.

B)   stock swap.

C)   returns swap.

D)   equity swap.

The correct answer was D)

A swap contract in which at least one party makes payments based on the return on an equity, portfolio, or market index, is called an equity swap.

2.When one party pays a fixed rate of interest in an equity swap, which of the following is FALSE?

A)   The equity-return payer will gain if the equity return is zero.

B)   The equity-return payer will receive the fixed-rate minus the equity return.

C)   The fixed-rate receiver will never get more than the fixed rate.

D)   Unlike other swaps, in an equity swap the one-quarter-ahead payment is not known at the end of the previous quarter.

The correct answer was C)

If the periodic return on the equity is negative, the fixed-rate payer must pay the fixed rate plus the percentage of (negative) equity return, times the notional principal.

3.An equity swap can specify that one party pay any of the following EXCEPT:

A)   the return on a single stock.

B)   the total return on a stock market index.

C)   the total return on a corporate bond.

D)   the return on a specific portfolio of three stocks including dividends.

The correct answer was C)

A swap involving the return on a bond would not be an equity swap.