expain ina easy way , please

The Market Value of a Swap Example: change in forward price Assume immediately after the initiation of the swap, the forward curve for oil rises by $2 in both years Assume interest rates are unchanged The new swap price will be $22.483, $2 higher than the old one (check and understand why exactly $2) PV of the differences = 2/1.06 + 2/(1.0652) = $3.65 $3.65 is the market value of the old swap 21 1 2 PV = 20 6-308 1.06 +2 1 16-20.483 T 06 +2365=2 .-22.483 The Market Value of a Swap Example: change in forward price Assume immediately after the initiation of the swap, the forward curve for oil rises by $2 in both years Assume interest rates are unchanged The new swap price will be $22.483, $2 higher than the old one (check and understand why exactly $2) PV of the differences = 2/1.06 + 2/(1.0652) = $3.65 $3.65 is the market value of the old swap 21 1 2 PV = 20 6-308 1.06 +2 1 16-20.483 T 06 +2365=2 .-22.483