Module 07 Swaps and Other Derivatives
Interest Rate and Currency Swaps
Swaps Swaps are contractual agreements between two parties to exchange cash flows or financial in...
Economic Motives for Swaps
The primary economic motives for engaging in swaps include: Risk Management: Hedge against adve...
Uses of Swaps in Risk Management
Swaps are versatile tools in risk management strategies: Interest Rate Risk: Lock in fixed rate...
Warrants and Exotic Options
Warrants are financial instruments granting the holder the right to purchase a company's stock at...
Weather and Energy Derivatives
Weather derivatives provide payouts based on weather-related events, such as temperature, rainfal...