Pricing and Valuation of Forward Contracts and for an Underlying with Varying Maturities
Free CFA Level I lesson in Derivatives. 11 min read, ~1,632 words.
© CFA Institute. Reproduced under EPP listing. - 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...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- pricing and valuation of forwards
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