Notes
Forwards & Futures - II
Content of the notes (1)
Page 1
For forwards and futures, the candidate will be able to:
• Determine forward price from prepaid forward price.
• Explain the relationship between forward price and futures price.
• Explain the relationship between forward price and future stock price.
• Use the concept of no-arbitrage to determine the theoretical value of futures and forwards.
• Given any four of call premium, put premium, forward price, strike price and interest rate, calculate
the remaining item using the put-call parity formula.
Information
- Description
- Exam FM Actuary (Forwards & Futures) Note on Forwards & Futures - II, created by Rebekah Perez on 01/05/2017.
- Created by
- Rebekah Perez
- Views
- 0
- Rating