Explain why a swap has zero value when it is initiated. Why might this be a useful

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Explain why a swap has zero value when it is initiated. Why might this be a useful convention?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 04:00 AM

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Explain why a swap has zero value when it is initiated. Why might this be a useful

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The swap rate on the swap is set so that the value of ...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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