Managing Interest Rate Exposure
Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition. The management of Interest Rate Risk …
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Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition. The management of Interest Rate Risk …
An interest rate swap is a type of a derivative contract through which two counterparties agree to exchange one stream of future interest payments for …
Currency Swaps A currency swap is a “contract to exchange at an agreed future date principal amounts in two different currencies at a conversion rate agreed …
A Forward Rate Agreement, or FRA, is an agreement between two parties who want to protect themselves against future movements in interest rates. By entering into an …
A derivative is a financial instrument whose value depends on underlying assets. The underlying assets could be prices of traded securities of gold, copper, aluminum …
Nature of Financial Derivatives: Financial derivatives refer to those financial products or instruments which derive their prices from the prices of their underlying assets. The …
Form # 1. Forward: Forward contract is a transaction which binds a seller to deliver at a future date and the buyer to correspondingly accept …
Forward Market A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are …
Forward Market Transactions Forward Contracts Forward contracts are the simplest form of derivatives that are available today. Also, they are the oldest form of derivatives. …
In India, the forward markets facilitate the hedging of transactional and contractual exposures. Transactional exposures are allowed to be hedged up to the amount of …