You provided an education to all on futures and optionscontracts. Senior Management was impressed with your presentationwhich detailed the differences between using futures contracts andoptions contracts to reduce risk. Senior Management has heard of adifferent type of derivative instrument called a swap and wouldlike to know if the company would have any need to use thisinstrument in the future. Please discuss a swap and how it could beused to reduce risk. What general examples would you give to SeniorManagement to illustrate effective and ineffective hedging? Alsowhat is meant by a swap rate? Provide published examples of swaprates. PLease all references in APA format

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