| | |
Summary: 1/78
Chapter 7. Derivatives markets.
Manual for SOA Exam FM/CAS Exam 2.
Chapter 7. Derivatives markets.
Section 7.10. Swaps.
c 2009. Miguel A. Arcones. All rights reserved.
Extract from:
"Arcones' Manual for the SOA Exam FM/CAS Exam 2,
Financial Mathematics. Fall 2009 Edition",
available at http://www.actexmadriver.com/
c 2009. Miguel A. Arcones. All rights reserved. Manual for SOA Exam FM/CAS Exam 2.
2/78
Chapter 7. Derivatives markets. Section 7.10. Swaps.
Swaps
Definition 1
A swap is a contract between two counterparts to exchange two
similar financial quantities which behave differently.
The two things exchanged are called the legs of the swap.
A common type of swap involves a commodity. Another
common type of swap is an interest rate swap of a fixed
|
