25.7 Equity swaps Total return on an equity index is exchanged periodically for a fixed or floating return When the return on an equity index is exchanged for libor the value of the swap is always zero immediately after a payment. This can be used to value the swap at other times Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 25.7 Equity Swaps • Total return on an equity index is exchanged periodically for a fixed or floating return • When the return on an equity index is exchanged for LIBOR the value of the swap is always zero immediately after a payment. This can be used to value the swap at other times