Question: In most common cases, a swap transaction can be viewed as a series of forward contracts on the underlying asset along with borrowing and lending.

In most common cases, a swap transaction can be viewed as a series of forward contracts on the underlying asset along with borrowing and lending. Suppose that you have those forward contracts along with options on those forward contracts. How does the value of the option on the swap contract compare to the value of a collection of options on the underlying forward contracts? Please note that all options in this case have the same strike price.

Briefly explain your response.

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