Honors Capstone Project
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Won Capstone Funding
Swaps are versatile financial derivatives that create contracts to exchange future cash flows. Throughout the last several decades the uses and importance of swaps have grown substantially. This document examines swaps from a historical perspective and includes a discussion on issues such as economic justification, industry standardization, market participation, and day-count conventions. Four main classifications of swaps are discussed: interest rate swaps, currency swaps, equity swaps, and commodity swaps. Interest rate swaps are by far the most common; however, each classification offers unique traits that demonstrate the versatility and efficacy of swaps as an asset class. Each class of swap will have a section devoted to its history, basic structure, pricing, valuation, and customization.
Rizzolo, Michael, "Swaps" (2009). Honors Capstone Projects - All. 479.
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