Swaps,like futures contracts,are generally written with zero value.

Name: Swaps,like futures contracts,are generally written with zero value.
Brand: Quizplus
Rating: 4.7 (34 reviews)

Question

Quizplus · Accepted Answer

Swaps,like futures contracts,are generally written with zero value.In the case of an interest rate swap,we generally take the floating interest rates from the spot rate curve (previously discussed in Chapters 5 and 6)and the appropriate fixed rate is calculated assuming that the value of the contract when it is written is zero.

Swaps,like Futures Contracts,are Generally Written with Zero Value