When does it make sense to use swaps? Under what conditions should a company utilize swaps and under what conditions should a company not utilize swaps? Please be sure to use your own words (don't quote) and cite your sources.

Under what conditions would a swap pay off and under what conditions would a swap turn out to be very costly? What are the risks associated with swaps? How can a firm mediate these risks? Please be sure to use your own words (don't quote) and cite your sources.

What are translation, transaction, and operating exposures? Why might these be an issue for a firm and how can the firm mitigate these risks?