5.2 Nature of Swaps A swap is an agreement to exchange cash flows(现金流) at specified future times according to certain specified rules Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, Shanghai Normal University 5.2 Nature of Swaps • A swap is an agreement to exchange cash flows (现金流) at specified future times according to certain specified rules