Hi @David Harper CFA FRM
Can you kindly help me to understand how we have calculated forward LIBOR rate here. Below snippet is from your s/s
this is in reference of SWAPS - 722.3.
thanks,
Ankit
Hi @David Harper CFA FRM,
request your help to understand the below concept, while doing SWAP valuation to calculate floating rate, we divide floating rate by 2. I'm not sure why we doing this . To my understanding is given floating rate is already semiannual ( highlighted in red in the below...
Hi @David Harper CFA FRM
Can you kindly help me to understand the logic of "Zero Variance Hedge" in context of this question. I'm bit confussed on Zero Variance hedge condition so not sure how we drived zero Variance hedge over here.
Price with Hedging : hF(0) + S(t) - hS(t)e^(r-rf)(T-t).
we...
Hi @David Harper CFA FRM,
Can you kindly help me to understand this concept ( short hedge bias can be both +ve and -ve ) again, to my knowledge
1. Short Hedge = Short Forward Contract : Basic = Spot - Forward : = -ve Bias .
how we will explain that Short hedge can be postive also.
Also...
Hi @David Harper CFA FRM ,
In reference of Hull Ex 7.3 , Can you help me to understand the formula we are using to calculate Forward Rates (s.a ) , Is there any generic formula for this, not sure how we derived this
FR ( s.a ) = =2*(EXP(3.40%/2)-1)
Hi David,
I'm working to understand the calculation we have in Tuckman Table 5.4: Row (vi). But not very much sure why we used below formula to get the dollar amount :
For 2 year : =$E28*10000*F$23
where F$23 = (0.0010) and $E28 = -100.000 mn
Hi,
In the given table, can you help me to understand the logic of calculation we have used to derive Shock and D(t)
I'm not very much sure what is generic forumula / theory used to calcualte the =I30-($G$30/($A$36-$A$30)) [ Snippet 1 ]
And while calcualting D(t) why we used "2" --->...
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