A plain vanilla equity swap comprises the exchange of equity return for the return stipulated by Libor.

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A plain vanilla equity swap comprises the exchange of equity return for the return stipulated by Libor. What particular types of risk are borne by the parties to the contract?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 11, 2024 09:03 AM

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A plain vanilla equity swap comprises the exchange of equity return for the return stipulated by Libor.

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For the party receiving equity returns and paying Libor the swap creates an exposure ...View the full answer

Derivatives Principles And Practice

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