Question: Select all correct statements regarding swaps: Select all correct statements regarding swaps: A spread differential represents the potential gains from trade to parties in a

Select all correct statements regarding swaps:
Select all correct statements regarding swaps:
A spread differential represents the potentialgains from trade to parties in a swap (or combination of swaps).
A spread differential means that some people see "PBJ" and think "grape jelly", and other people see "PBJ" and think "strawberry jam".
Swaps cannot be used to hedge foreign exchange rate risk because they are derivatives.
Swaps are contracts.
Swap banks do not have to be actual banks. Another term for a swap bank is a swap dealer.

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