Fixed for Fixed currency swap, semi-annual Payments blah blah blah I am able to find the values as follows: USD - 1.00998 CHF(In USD) - 1.03750 Answers are -2719 2814 2719 My question is, how do you know what order to put the factor values into? 1.00998 - 1.03750 vs 1.03750 - 1.00998…is is DC-FC? FX = CHF:USD - .34
Honestly, it doesn’t matter. As long as you keep track which party pays which rate, all you care about is the net. FYI, this is why I don’t do FX swaps this way, it’s way too confusing to do everything as per 1 unit of notional currency. Just keep track of who has what currency, and the rate they are paying. Calculate each party’s respective payment. But then convert 1 payment to the other so it’s apples to apples. If the answer’s are in USD, convert the non-USD to USD. Net the 2 and you see who “wins”…