Valuing a Floating Rate Note (FRN)
In this short video from FRM Part 1 curriculum, we derive the value of a Floating Rate Note (FRN) – both on a coupon / reset date as between coupon dates.
Category: Financial Markets and Products
What is Basis Risk?
In this short video from FRM Part 1 curriculum, we take a look at a very important risk that you’ll be exposed to if you hedge using futures – basis risk.
Valuing Cross Currency Swaps: Equivalence of Bond & Fx Forward Methods
In this short video, we take an example of valuing a Cross Currency Swap, and perform this valuation via two approaches: the Bond Method and the Fx Forward Method.
Valuing Interest Rate Swaps: Equivalence of Bond & FRA Methods
In this short video, we take an example of valuing an Interest Rate Swap, and perform this valuation via two approaches: the Bond Method and the FRA Method.
Theories of Interest Rate Term Structures
In this swatch, we take a look at three proposed theories of why interest rates have term structures i.e. they are not flat or constant.
Currency Swaps: Valuation Approaches (FRM Part 1)
Here, we look at currency swaps – their mechanics and valuation approaches both as positions in bonds and using currency forwards.
Adjusting Option Terms for Stock Dividends (FRM Part 1)
Here, we take a look at how option contracts are adjusted for stock dividends and stock splits.
Foreign Exchange Risk: Simple Formulation (FRM Part 1)
Here is a quick and simple formulation for gaining insights into foreign exchange risk and hedging it.