Explanation:
The incorrect statement is D. In a commodity swap, the cash flows are generally netted between parties, just like in a standard interest rate swap.
Why the others are true:
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Q-178.5. With respect to a generic commodity swap, EACH of the following is true EXCEPT:
A
A commodity swap is effectively a series of forward contracts on a commodity with different maturity dates and the same delivery prices
B
A Commodity swap is financially settled and does not involve any physical delivery
C
Like a vanilla interest rate swap, notional is not exchanged
D
Unlike a vanilla interest rate swap, exchanged payments are NOT netted