Equivalence of Derivatives (Swaps, FRAs, and Interest Rate Options)

Sep 8, 2016

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in Level I Derivatives, Level II Derivatives

Various interest rate derivatives are, in fact, equivalent to each other; i.e., they can be structured to generate equivalent (though not necessarily identical) cash flows. This article will explain how these derivatives can be structured to be equivalent to each other. First note that you will not be asked on an exam to create equivalent […]

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