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Question
Which of the following is an advantage of having swap dealers?
A. They serve the function of taking the opposite side of each transaction in order to keep the swap market liquid.
B. They reduce the search costs of finding counterparties having mirror image financing requirement.
C. They generally guarantee swap payments over the life of the contract.
D. They incur any costs associated with the default by replacing the defaulting party on the same terms as the original swap.
E. All of the above.
Answer
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