Learning Module 5 of Derivatives 5–8% of the exam
Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
2 lessons. About 0 minutes in cram mode, 0 minutes in full.
Lessons for this module are being written. The outcomes and lesson plan below are final.
Lessons
- 1 Pricing and Valuation of Forward Contracts
Coming soon
- 2 Pricing and Valuation of Interest Rate Forward Contracts
Coming soon
What the exam expects you to do
- Explain how the value and price of a forward contract are determined at initiation, during the life of the contract, and at expiration.
- Explain how forward rates are determined for interest rate forward contracts and describe the uses of these forward rates..