Total Return Equity Swap

CFA Level II Derivatives
#1

Is the following correct?

Long Total Return Equity Swap - Pay positive equity return, Receive LIBOR AND negative return

Short Total Return Equity Swap - Vice versa

#2

I think long equity swap is to “pay fixed (interest), receive float (stock return)”.

#3

As far as I can tell, the curriculum does not define which party is long and which is short.

On the exam, expect that they’ll tell you either that you’re paying the equity return or else that you’re receiving the equity return.