Receiver station an option to receive the fixed leg of a


The following appeared on a quote sheet:

"Receiver Station: An option to receive the fixed leg of a swap (i.e., long receiver is long duration).

Payer Station: An option to pay the fixed leg of a swap (i.e., long payer is short duration)."

a. Explain why for the receiver station the part is long duration.

b. Explain why for the payer station the part is short duration.

Solution Preview :

Prepared by a verified Expert
Business Management: Receiver station an option to receive the fixed leg of a
Reference No:- TGS02582754

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)