1. Swaps Suppose a firm enters a fixed for floating interest rate swap with a swap dealer. Describe the cash flows that will occur as a result of the swap. 2. Option Explain why a put option on a bond...

1. Swaps Suppose a firm enters a fixed for floating interest rate swap with a swap dealer. Describe the cash flows that will occur as a result of the swap.

2. Option Explain why a put option on a bond is conceptually the same as a call option on interest rates.

May 26, 2022