Construction and Valuation of Commodity Swaps

Studienarbeit aus dem Jahr 2017 im Fachbereich BWL - Investition und Finanzierung, Note: 2,0, Frankfurt University of Applied Sciences, ehem. Fachhochschule Frankfurt am Main, Sprache: Deutsch, Abstract: The purpose of this research is to describe a special form of swaps: commodity swaps. Providing an overview of the application, construction and valuation of commodity swaps.

The organization of the research is structured in five chapters. The next chapter involves theoretical fundamentals of the terms commodity and swap and it defines the meaning of the expression commodity swap. After that, the paper outlines the main trading motives of commodity swaps. Then, two types of commodity swaps, which are the basis of a further modification of commodity swaps, are introduced and their construction is illustrated.

In addition to the construction, the following part starts with the theoretical valuation of commodity swaps and gives a fictive instance of a valuation. The paper closes with a conclusion of the main points of the construction and valuation of commodity swaps.