It's genius to have equity swap. It's a hedging against the...

It's genius to have equity swap. It's a hedging against the share price for six month.

Let's say, investor is happy to invest $10000 through equity swap, with certain hedging split.

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Split	Payment Now	Hedge Payment	Total Paid	Current Mkt Value
1	50:50	5000	2500	7500	5000
2	20:80	2000	4000	6000	5000
3	70:40	7000	1500	8500	5000

Note: the hedge payment is based on 50% discount

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Split	Payment Now	Hedge Payment	Total Paid	Current Mkt Value
1	50:50	5000	6000	11000	12000
2	20:80	2000	9600	11600	12000
3	70:40	7000	3600	10600	12000

Note: the hedge payment is based on +20%


DYOR.