In this video from the FRM Part 1 and CFA Level 2 curriculum, we take a comparative look at Covered Interest Rate Parity and Uncovered Interest Rate Parity.
In this video from the FRM Part 1 and CFA Level 3 curriculum, we take a look at Variance Swaps and explore their mechanics and through a simple example how they can be put to use in practice.
In this video from FRM Part 1, we explore an alternative version of the Put Call parity which is called the Put Call Forward parity – a no-arbitrage relationship between European option prices (of same strike and maturity), forward / futures price and present value of strike.
In this video from FRM Part 1 and FRM Part 2 curriculum, we explore the mechanics of FX swaps, how they work, how they can be intuitively decomposed into simpler instruments and how they can be used in practice (as a way of funding an asset denominated in foreign currency by paying interest in the domestic currency).
In this video from FRM Part 1 and CFA Level 1 curriculum, we take a look at how interest rates impact option prices i.e. premiums of European Calls and Puts.
In this video from FRP Part 1 and CFA Level 1 curricula, through a solved example, we take a look at how bond pricing works when settlement date is somewhere between coupon dates. We calculate the dirty price, clean price and accrued interest on a given settlement date.
In this video from FRM Part 1 curriculum, we take a look at a solved example on the learning objective: “Describe the use and calculate the payoffs of various spread strategies.”
In this video from FRM Part 1 curriculum, we take a comparative look at the Bullet strategy and the Barbell strategy, how they are implemented and the relative advantages and disadvantages of each for different interest rate outlooks or forecasts.
In this video that FRM Part I candidates will find of interest, we explore the concept of Convexity Adjustment as applied to Eurodollar Futures, the origins of this adjustment and how this adjustment can be determined.