forwards

  1. Nicole Seaman

    P1.T3.21.8. Derivatives for hedging

    Learning objectives: Define derivatives, describe the features and uses of derivatives and compare linear and non-linear derivatives. Describe the specifics of exchange-traded and over-the-counter markets, and evaluate the advantages and disadvantages of each. Differentiate between options...
    • Nicole Seaman
    • Thread
    • arbitrageurs derivatives exchange-traded-markets forward-contract-payoffs forwards futures-contract hedgers linear-derivatives non-linear-derivatives option-contract-payoffs options over-the-counter-market speculators
    • Replies: 0
    • Forum: FRM® Practice Questions
  2. Nicole Seaman

    P2.T5.717. Value at risk (VaR) mapping (Jorion Ch.11)

    Learning objective: Describe the method of mapping forwards, forward rate agreements, interest rate swaps, and options. Questions: 717.1. A portfolio manager evaluates the risk of the following two-bond portfolio: We assume that specific risk is negligible and that the volatility of...
  3. Nicole Seaman

    P1.T3.707. Hedging versus speculation (Hull Chapter 1)

    Learning objectives: Describe the over-the-counter market, distinguish it from trading on an exchange, and evaluate its advantages and disadvantages. Differentiate between options, forwards, and futures contracts. Identify and calculate option and forward contract payoffs. Calculate and compare...
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