Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'dividend swap'?

A. total return swap whose return leg underlier is based on equities
B. dispersion swap that is a forward contract on the variability of movements in the price of its underlying equities
C. dispersion swap in which the parties agree to exchange payments based on the difference between (i) the realized variance of the price changes of a specified equity underlier over a stated observation period and (ii) a fixed amount of variance that is agreed when the contract is executed
D. equity swap that has at least one leg whose underlier is a dividend stream

Answer: equity swap that has at least one leg whose underlier is a dividend stream