Interest Rate Swaps
In interest rate swap, the borrowers switch floating-rate loans for fixed rate loans in another country conducted in the same or different currencies. In general, the cash flows, not the principals, of the two types of debt are exchanged. The most common types of interest rate swaps include plain vanilla and fixed-for-floating swaps.

Cross Currency Swaps (CCS)
Cross Currency Swaps (CCS) are also known as circus swaps. They have features of both currency swaps and interest rate swaps. Loans in one currency with a fixed rate would be swapped for a floating rate loan in the other currency at a mutually agreed future date. Notional principal amount and interest payment (fixed to fixed, fixed to floating, or floating to floating ) can be made at the beginning or end of the period.

Interest Rate Options
An interest option is an option on interest rate. In order to exercise the right to limit the interest rate fluctuations through interest caps and floors, the buyer or holder of the option will pay a “premium” to the seller. On the contrary, the seller will be required to perform the obligation on the expiration or settlement date at an agreed-upon interest rate. The “premium” is in fact the price of the option.