False. In a volatility swap, there is typically no exchange of principal. The contract settles only the net payoff based on the difference between realized and fixed volatility, multiplied by notional.
Q-22.3(c) True or false: Typically principal is exchanged at maturity | Financial Risk Manager Part 1 Quiz - LeetQuiz
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Q-22.3(c) True or false: Typically principal is exchanged at maturity