Derivatives question

In problems where we are given variable interest rates eg : swaps or interest rate options, do we consider the starting period variable interest rate or the ending period. Thanks

I think this had to do with the “arrears method”… the beginning stated rate applies, right?

In Schweser, in case of interest rate swaps they have considered beginning rate interest rate but for Interest rate options they have considered the ending rate.

yep, use beginning period.

This also means that despite of the floating rate leg involved in the swap transaction, we already know the first transaction that exchange hands at the 1st settlement date after the initiation of the contract.

Yes exactly, so before every transaction, we will know the money that will change hands at the end of the term