Cryptocurrency Q&A
What is the cost of a swap?
What is the cost of a swap?
CryptoWanderer
Thu Oct 24 2024
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5 answers
1254
I'm considering a swap in my financial transactions, but I'm not sure about the cost involved. Could someone explain to me what the cost of a swap typically entails?
5 answers
Alessandro
Fri Oct 25 2024
A swap is priced through the calculation of the par swap rate.
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SsamziegangSerenadeMelodyHarmony
Fri Oct 25 2024
Transaction and counterparty credit costs are typically ignored in this assessment.
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DigitalLegendGuard
Fri Oct 25 2024
This rate serves as a fixed benchmark.
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Carlo
Fri Oct 25 2024
It ensures that the present value of all future floating cash flows equals the present value of all future fixed cash flows.
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Nicola
Fri Oct 25 2024
At the inception of a swap, its value is theoretically zero.
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