Derivatives
Commodity-Linked Interest Rate Swap
July 26, 2022
Derivatives
Call Ratio Backspread
July 26, 2022

A swap to exchange cash flows based on the price of an underlying commodity. Put another way, the commodity swap involves exchanging a spot price (the floating leg) for a fixed price over a preset period. Effectively, it is a series of forward contracts on a commodity with the same delivery prices but different maturity dates.

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