An equity swap in which the equity return is linked to whichever is higher of two equity indices. For example, assume an equity return leg of a swap that receives the greater return of two stock indexes: S&P500 and CAC40. This swap may, also, be entered into by an investor and an underwriter, whereby the former pays a foreign index return and receives from the latter, in exchange, another foreign equity index. That means, one party trades the returns on one equity index for the returns on another equity index.
Derivatives
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