Hi guys, obviously everyone is studying hard trying to nail down some last minute concepts. With some poor judgement on my side i decided that swaps were too hard and that i couldn’t calculate them. I’m looking for any tips on questions which i can do schweser or cfa tp help nail down my understanding of all swaps (int. rate, currency and equity). Thanks in advance and good luck with the exam on Saturday!
CFAI provides excellent problems on swap questions, i recommend you drill them.
From the book? Blue book examples?
No mate, i’m referring to those at the end of the reading. they’re 13 extenstive problems followed by a 6q item set, i found them useful.
Thanks!
I found it most beneficial to make a time line out of the swap/ FRA to visualize the discount periods and cash flows. It takes a little time but it helped me understand the principles behind the valuation
Agreed with data storm…the EOC questions from the CFAI book were very helpful. Eventally it becomes like muscle memory working through all those steps, although currency swaps take it to a whole new level and make it more confusing.