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BASICS OF EQUITY DERIVATIVES - Bombay Stock Exchange

BASICS OF EQUITY DERIVATIVES - Bombay Stock Exchange

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4 Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: • Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency.

  Agreement, Rates, Interest, Interest rate

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