25.5 Currency swaps Standard currency swaps can be valued using the"assume forward LIBOR rate are realized”ru|e. Sometimes banks make a small adjustment because LIBOR in currency a is exchanged for liBor plus a spread In currency B Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 25.5 Currency Swaps • Standard currency swaps can be valued using the “assume forward LIBOR rate are realized” rule. • Sometimes banks make a small adjustment because LIBOR in currency A is exchanged for LIBOR plus a spread in currency B