this is the best explanation of FRA! finally understand it after watching your video, thanks a lot!
@financemark
2 жыл бұрын
Thanks - I'm glad it helped!
@mirayy1573
Жыл бұрын
I don’t understand the answer. I calculated all the formulas too but I have completely different answers. am I missing something?
@erahia5637
Жыл бұрын
if the FRA locked in was 3.5% and your paying interest on 3.5%, but the FRA at that period in time is 2%. Why wouldn't the bank pay you for paying a higher interest rate than the current lower spot interest rate
@lucianoanddaddygaming6235
9 ай бұрын
excellent explanation, ty so much.
@financemark
9 ай бұрын
Thanks so much! I'm glad it was helpful
@sudaminis1302
2 жыл бұрын
Great explanation! Thank you for putting this video on.
@financemark
2 жыл бұрын
Thanks - I'm glad it was helpful!
@fakhrik
5 жыл бұрын
Grand explanation!
@financemark
5 жыл бұрын
Thanks a lot!
@allisonvelazco4578
4 жыл бұрын
Extremely clear, thank you.
@financemark
4 жыл бұрын
Thanks a lot!
@ruturajpatwardhan8129
4 жыл бұрын
Great Explanation. Thank you. Will you please confirm that , in your example, Respective person has borrowed FRA.
@paolaval3676
2 жыл бұрын
I absolutely adore you! Best explanation by far. Muchas gracias!!🙏🏾
@goldboateng8073
2 жыл бұрын
Thanks so much for this video... i really appreciate it. it helped a lot
@tarisotzendera6758
5 жыл бұрын
Detailed explanation but try to explain slowly.
@financemark
5 жыл бұрын
Thanks for the feedback :) I'll keep it in mind for the future
@BonBonShrimp
3 жыл бұрын
Great video. I just had to listen at 0.75 speed to be able to understand.
@muhammedsiyad254
Жыл бұрын
Seriously you make me understandable!
@blankerhans9659
2 жыл бұрын
Why is it (R-FRA) and not (FRA-R) ?
@zubairahsanimavoor7202
4 жыл бұрын
Nice one..From India
@financemark
4 жыл бұрын
Thanks a lot! Very much appreciated :)
@Xin0615
5 жыл бұрын
great explanation! thanks!
@financemark
5 жыл бұрын
Thanks. Glad it helped :)
@wanjadouglas3058
4 жыл бұрын
very helpful
@financemark
4 жыл бұрын
Thanks! Glad it was useful
@jonghoonlee9130
3 жыл бұрын
Clearly explained
@jonnyainslie6715
4 жыл бұрын
Hi, really great video; just 3 hopefully quick questions if I may: Could you please explain the final PNL calculation on the FRA? Using your first example, upon settlement date you receive $12,254.90 however upon maturity what is the PNL calculation? Or, if a firm was to purchase the FRA as shown in the example, but say 2 days after settlement date the firm closes its position, how would you calculated the final PNL? Would it just be the difference between the settlement amounts? Also, a firm has this position on for example, but wants to calculate the market value at the end of each month - I assume the market value calculation can be calculated as: "if you were to close this position out right now, what would be the difference between the settlement cash amounts" Finally, let's assume that the FRA notional was £5mil not $5mil, I assume you can work out the $ settlement amounts by dividing through by the FX rate at the end? Thank you!
@aItravel123
3 жыл бұрын
simple maths: Case 1) 0 .5% +Ve for six months means 0.25% for a year so the buyer will receive the 0.25% of the notional value i.e. 5 Mio. Case 2) 1 .5% -Ve for six months means -Ve 0.75% for a year so the buyer will pay the 0.75% of the notional value i.e. 5 Mio.
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