Degree Type

Honors Capstone Project

Date of Submission

Spring 5-1-2009

Capstone Advisor

Thomas Barkley

Honors Reader

Donald Dutkowsky

Capstone Major


Capstone College


Audio/Visual Component


Capstone Prize Winner


Won Capstone Funding


Honors Categories


Subject Categories

Corporate Finance


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.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.



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