An interest rate swap is a contract between two parties to exchange fixed and floating…

An asset swap is a type of contract that involves exchanging two different kinds of…

CP stands for commercial paper, which is a type of short-term debt instrument issued by…

Relative advantage in borrowing is the concept that different borrowers have different costs of borrowing…

Hedging with an interest rate swap is a way of reducing the exposure to changes…

Hedging with an FRA means using a forward rate agreement (FRA) to protect yourself from…

Hedging borrowing costs is a strategy that aims to reduce the risk of fluctuations in…

Discounting future foreign exchange risk is the process of adjusting the value of future cash…

Arbitraging is the practice of exploiting price differences or inefficiencies in the market to make…

Exchange rate agreements are contracts that provide protection against fluctuations in currency exchange rates. They…