CHAPTER 7
Swaps and Forwards
Swaps and forwards are priced in the market as an interest rate and as an interest-rate differential. How to price swaps and how they are traded in many of their various forms will be outlined in depth in this chapter. The interest-rate differential as it relates to forward points is not only discussed but an example is presented. The chapter begins with a discussion of swaps and forwards and their many types are detailed as examples. The various types of interest rate swaps, their types, examples, and how they relate to the markets and currency pairs in particular will be discussed and explained in detail on a step-by-step basis. This chapter begins with an explanation of swaps and forwards along with examples. ...
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