What are SWAPs? Explain their main characteristics and applications. Describe the various kinds of SWAPs.

A swap is a financial derivative contract in which two parties agree to exchange future cash flows based on a specified notional amount. These cash flows are usually linked to an underlying asset, index, or interest rate. Swaps are widely used in the financial markets to manage various types of risk, including interest rate risk, currency risk, and commodity price risk. In the context of equity derivatives, swaps allow market participants to gain exposure to the performance of stocks or stock indices without actually owning the underlying asset.

### Main Characteristics of Swaps
1. Notional Amount: The principal amount upon which the swap's cash flows are based. It's important to note that the notional amount is never exchanged between the parties; it is simply used to calculate the payment amounts.
   
2. Exchange of Cash Flows: Swaps involve periodic exchanges of cash flows between two parties. These cash flows can be fixed or _____ __________ ___ _____ ___ ________ _________ ________.
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