Swaps Flashcards
1
Q
Benefits of using swaps
A
very flexible in order to match needs
exotic futures built upon swaps
2
Q
how do we price swaps
A
pricing swaps involves finding the coupon the fixed rate bond should pay in order for money not to be exchanged up front
3
Q
what is a swaption
A
the option to enter into swap at some future point in time
