Investments An Introduction Sixth Edition文档.pptVIP

* Swap Agreements A swap agreement a contract in which the two parties trade payments * Currency Swap In a currency swap, the two parties: agree to trade payments in different currencies; Swaps help manage exchange rate risk. * Other Swap Agreements In an alternative type of swap, one party trades a fixed payment for a variable payment. The “counter party” swaps the variable payment for the fixed payment. The swap helps management reduce the risk from changes in interest rates. * Equity Swap Two parties swap payments based on a stock price index. Swap payments are made based on the extent