Category: Financial Markets and Products

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,a look at how exotic options (specifically, barrier options) can be hedged using static replication.

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.

In this video from FRM Part 1 curriculum, we explain various trading order types, distinguish between them and explore their impact.

In this short video from FRM Part 1, we explore (rather closely and in detail) the reason why futures and forward prices differ.

In this short video from the FRM Part 1 curriculum, we explore this concept of “Tailing the Hedge”. It is defined as the reduction in the quantity of futures based hedge required, if you were to take into account the daily settlement feature.

In this video from FRM Part 1, we explore how speculators differ from hedgers and how the former can use derivatives to monetise their views about market variables.

In this video from FRM Part 1, we explore an alternative approach for valuing interest rate swaps – the offsetting swap method. We make ourselves familiar with the steps in this approach and then apply it to a simple solved example.