1. An interest rate swap has ----------- worth when first initiated. Over time, its value becomes----------.
A. Zero; positive or negative
B. Positive or negative; zero.
C. Positive or negative; positive or negative.
D. Zero; zero.
2. A company that is party to a swap will be subject to credit risk when the swap has--------
A. Positive
B. Negative
C. Zero
D. Positive or negative