  Valuation adjustments are nowadays a common practice to include credit and
liquidity effects in option pricing. Funding costs arising from collateral
procedures, hedging strategies and taxes are added to option prices to take
into account the production cost of financial contracts so that a profitability
analysis can be reliably assessed. In particular, when dealing with linear
products, we need a precise evaluation of such contributions since bid-ask
spreads may be very tight. In this paper we start from a general pricing
framework inclusive of valuation adjustments to derive simple evaluation
formulae for the relevant case of total return equity swaps when stock lending
and borrowing is adopted as hedging strategy.
