CFA Level 1- Derivatives- Forward Rate Agreement

[@benmousavi6880]

I'm studying at La Trobe University Melbourne. I must say, loudly, that Indian teachers are the best one ever. Thank you, man.

[@jamesmarchetti3305]

I’m starting up this semester a Master of Financial Analysis at La Trobe- any tips?

[@varunshahvo-tv9854]

Next time pay for lectures

[@bhaladavishal531]

@@varunshahvo-tv9854 laude tu khud fukat me dekh rha hai or usko bol rha hai

[@qelmnl]

This is undoubtedly the best explanation ever of how a FRA works. Lessons at my university, the CFA and Schweser books, dozens of other videos on the internet do not even come close to the clarity and simplicity of your explanation. Sir, you are a fantastic teacher and I do thank you so much for posting this video. It has helped me a lot. My warmest regards.

[@HamletNOR]

This is quite possibly the best video on FRAs I’ve ever seen! Thank you for the lesson, and good luck to anyone else doing the CFA exam in 2018 :-)

[@karishmasandhip249]

I cannot believe how easy you made the whole concept... i was having a headache trying to understand the long formula in the book. Thank you so much.

[@Ghithrif]

I am currently preparing for my CFA level 1 exam this August. Thank you Sir, you are amazing!

[@siyabongandlovu7466]

This is the best explanation I've heard in FRAs

[@madhaviarora5481]

This is extremely insightful, and thank you so much for making it easy to understand and learn!

[@segunhudu260]

my lecturer and my text books, made this a monster topic ! 😂😂😂 ! thank u !

[@pragyasharma7112]

great tutorial!you were very clear in your speech and concepts were simplified!big help!

[@apratimbasu6578]

Excellent video, the concepts were explained in a very simple and easy language. Thanks for providing such explanation in a clear and easily understandable language

[@maxlee7918]

Very clear and simple explanation, very easy to understand. GOOD WORK!

[@aashiksingh7704]

Best possible explanation of FRA's. Really easy to grasp the concept and simple to calculate compared to what is taught in the books! Great job!

[@DuongHao-em7sj]

This video makes FRA so simple, thank you so much for this

[@FintreeIndia]

Glad it helped! utkarsh

[@sahatanand3897]

The best video on FRA 💯

[@zubairahsanimavoor7202]

Your classes are pretty good man.From Kerala.

[@kunaldaude9241]

loved it. top work sir

[@CH-zu6vc]

Amazing explanation, allows you to understand intuitively

[@kedu04]

Thank you for this video, it helped me to distinguish between the contract maturity period and the loan period

[@sriram181]

This was a marvelous lesson , especially for preparation of exams like CFA . I was however having a problem in acquiring the present value of the profit , in both the Sums I was unable to get the shown answer . Can someone please tell me step by step how was the present value calculated ? FV/ 1+IY was not working for me , I wonder where I'm going wrong

[@aditi_chann]

Explained so simply! Thank you

[@shantanusinghrana6584]

perfectly explained sir.....commendable!!

[@donranabs4048]

Thank you, this video helped me to better understand the formula.

[@goodfornothings]

Thank you so much for this, it really helped me understand FRA. I appreciate you're work. Thanks sir

[@FintreeIndia]

You're welcome! We're glad that you were able to assimilate the information! - Team FinTree

[@danilofurtadogemaque8737]

Very well explained, made it easy for me, thanks.

[@badalmunda5418]

thank you very much sir this video greatly helped me to grasp the concept in a very easy and simple way..........

[@rajesh9970680026]

Very nice explanation , it's very difficult to understand from schweser

[@manelicecream9689]

wow i just subscribed to ur channel! ur explanations were perfect

[@Nicolasacero91]

best explanation ever!!! THANKS!

[@SSA-29-10]

10:23 why do we discount using LIBOR?

[@neerajyadav-ms3ze]

Sir can you explain this question through a video by extrapolating this concept. Unable to grasp the solution through text book. Example: Computing the value of an FRA Suppose the 3-month and 6-month LIBOR spot rates are 4% and 5%, respectively (continuously compounded rates). An investor enters into an FRA in which she will receive 8% (assuming quarterly compounding) on a principal of $5,000,000 between months 3 and 6. Calculate the value of the FRA. Answer: R forward - 0.05 + (0.05 -0.04) X ((1/ (2 - 1)) = 0.06 = 6% R forward (with quarterly compounding) = 4 x (e^(0.06/4)-1)= 0.060452 = 6.05% value = $5,000,000 x (0.0800 - 0.0605) x (0.50 - 0.25) x e^(-0.05)*0.5) = $23,773

[@shripadkulkarni6016]

Thank u so much sir ur each video helps me a lot please share video on synthetic FRA. plz sir....

[@SingaporeListener]

Very good teaching.

[@MA-qm7yv]

Thanks guy for this video !! :)

[@chuckn11]

at 7:50, right to borrow is 6% and market is 7%.....you said the opposite.

[@aparnakamat1488]

Excellent explanation.

[@AmNonExistant]

I think there’s a mistake at 1:50 since you would want interest rates to increase and not decrease

[@harshsingh4063]

yes he said wrong but eventually wrote the right direction

[@poojachandak7147]

Hi sir, can there be a convention like 13*19 in FRA?

[@kgantshomonaledi6235]

This is so helpful. Thank you sir

[@Do_Anything_you_want]

In the second example, the current rate is 8% and you calculated iy on 7%. Please answer. Thank you

[@sndpdhwn]

bhut bhut shukriya

[@javiermenendezmathur9759]

I belive that this calculations are not require for the level 1 candidates.

[@ninjaslayer6787]

omg this is amazing!!!

[@sunitajhawar2443]

Why is N 1? Shouldn't that be adjusted for the time period as well?

[@goldboateng8073]

thank you so much

[@ΔημοσθένηςΓατόπουλος]

well done mate thank you so much

[@snehaghildiyal4498]

really helpful!

[@tedchou12]

love this video

[@vex1858]

great tutorial

[@rishveersinghragoomundun9499]

great lecture thank you

[@ramyapai4441]

Thanks a lot Sir.

[@zubairahsanimavoor7202]

What is count convention sir? From Kerala

[@sushanthbollaboina9392]

Thanks a ton

[@kondasandeep7]

Is the underlying a loan or an interest rate on that loan?

[@FintreeIndia]

It's the same thing, FRA's are generally cash settled

[@pandibala9435]

i have to confusion for long IR increase is benefit could u plz clear me

[@apratimbasu6578]

I am unable to access your website. plase provide your company website as i will be subscribing for frm part 1 exam

[@FintreeIndia]

Dear Apratim, Thanks for getting in touch with us! You have not indicated if you would like to register for the Classroom or the Online Program. However, we have provided the registration links for both the programs available for your access at your convenience. FinTree FRM Classroom Program- bit.ly/2MFB8ia FinTree FRM Online Program- bit.ly/2wHJwUp For further information, you may email us 24x7 at [e-mail] or call us at [phone] from 9 am - 9 pm IST (3.30 am - 3.30 pm GMT). Best regards, Team FinTree

[@zakariaa4507]

Please why N = 1 since it's only 90 days ?

[@bsinging1]

How is I/Y = 1.75% ? 7*(30/360) = 0.58% Can you please explain what am I missing here?

[@kgantshomonaledi1074]

Mika Singh he says 7 X 90/360

[@aigarsrosenberg6208]

Short FRA at 6% with LIBOR at 7% is a net loss of 1%, not a profit? Profit for that would be long FRA?

[@FintreeIndia]

Spot on , for Long it's a 1% profit (to be adjusted for underlying time) and for Short it will be a loss of 1%

[@aakashtiwari2472]

Nice!

[@jitendraadwani6875]

gud one

[@SanjayGupta-tp5zl]

Sorry I am not sure on the long and short part can you please explain again

[@saitomsai4150]

thank your Sir

[@FintreeIndia]

Saitom Sai thank you for your kind words

[@VighneshVarma]

WHY WILL LONG BENEFIT IF INTERST RATE INCREASES.It should have been reverse

[@taniyashaikh92]

is N always 1??

[@FintreeIndia]

No, It can be anything, here in both example used 1

[@taniyashaikh92]

Can you please give an example where N is different for better understanding

[@BejaouiImen]

yes, actually, N is always 1 year because that's how the FRA payment formula has been established ( I suppose because the bank always displays annuel interest rates that's why we always divide by 1 year) and that's why he multiplied the annuel year 7% by (180*360) since his loan is of a period of 180 days.

[@nimagupta4609]

Sir I want a deatails of cfp

[@MominNz]

50000/= PV at 3.5% is 48250/=. Please correct if I’m wrong. Thanks

[@yashdhanwani8808]

7.30 . Mistake

[@akankshatiwari9872]

Aapne Yaha n 1 kyu liya hai..

[@Quickclips_d4c]

You should work on pronounciation

[@arungautam3454]

His pronounciation is fine. You need to work on your listening.

[@ShirinShaba]

Very well explained sir, thank you so much for making it so easy