Question: One key difference between interest-rate swaps and option contracts is: Swaps are derivative agreements and options are not. Swaps do not involve any risk and

One key difference between interest-rate swaps and option contracts is:

Swaps are derivative agreements and options are not.

Swaps do not involve any risk and options do.

Options transfer risk, swaps create risk.

Options trade on organized exchanges and swaps do not.

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