You may have a similar summary. Here is mine…please correct me if there is anything wrong in it. It’ll be great if you can share yours as well.
Interest Rate Swap: - fixed-rate loan => floating-rate loan (effective borrowing rate?) - adjust duration of a bond portfolio (0.75/0.5, NP=?) - leveraged floater(4 parties, net cash flow=1.5*(ci-FS)*FP in EX3) - inverse floater(4 parties, net cash flow=(FS+ci-b)*FP)
Currency Swap: **- convert loan in foreign currency to loan in . (cash flows?) - convert foreign cash receipts into domestic currency.(NP=?, cash flows?)** - dual-currency bond(pay principal in , pay interest in SF)
Equity Swap: - diversify a concentrated portfolio.(problem?) - international diversification(tracking error) - change alloc from stock to bond - reduce insider exposure(LIBOR<=>Stock)
Swaption: - anticipate a future borrowing in float rate(pay min of FS(2,7) and excercise rate) - terminate a swap(pay-fixed swap needs a receiver swaption) - synthetically add a call by buting a receiver swaption(concern falling rate, X=cpn-credit prem)