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Swap
Can anyone explain concept of swap/swaption in simple way?
Replies (1)
In general, we can say that in swap parties are trying to reduce their cost. How to do it? Generally when two parties are get together they might have different choices. say one wishes Fixed rate and other wants flexible rate. They then get agreed in such a way that the cost to both of them reduces.
hope it will clarify it
thanks
chirag
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