Which of the following statements accurately describes the "swap" derivative instrument?
1
It is a contract to buy or sell an asset at a predetermined price at a specific future date.
2
It provides the holder the right, but not the obligation, to buy or sell an asset at a specified price.
3
It involves the exchange of cash flows or other financial instruments between two parties.
4
It is a standardized contract traded on organized exchanges.
5
It is a short-term debt instrument issued by corporations.