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Window Reset Swap


Originally, a periodic reset swap in which the floating rate payer is allowed to reset the floating rate (LIBOR) at any date within each reset period, rather than the beginning of each period, without having to bear any additional costs. In this sense, this swap has an embedded option that enables the floating rate payer to immediately avail of any window of opportunity that may preset itself when rates follow a declining route.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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