Credit risk in the swap market Multiple Choice is extensive and equal to the total value of the payments that the floating rate payer was obligated to make. is extensive. is limited to the difference between the values of the fixed rate and floating rate obligations.

Walking through the grocery store, ramon sees a "buy 2, get 1 free" deal on laundry detergent. even though he currently has plenty of detergent he decides to take home all three bottles. ramon's decision seems to have been based mostly on his immediate need for the detergent the low price of alternative brands the limited income he presently earns the sale price offered for the detergent