Forward Rate Agreements (FRAs) - Online

This module covers Forward Rate Agreements, or FRAs. FRAs are one type of forward contract, in which two counterparties agree on an interest rate to be paid on a 'deposit' or 'loan' at a future date. This module will look at how interest accrues on these agreements, the factors necessary to hedge with an FRA, the uses of FRAs in speculating, and how a forward curve is constructed.

This course replicates the content from lesson 2 of Forwards and Futures - Online

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer. Subscription period for this course is 90 days.

Available TodayOnlineUSD$60.00
Instructional Method:
Self-Study
Level: Intermediate

CPE CREDITS
1
Traders, sales professionals, back office professionals, financial analysts, cash/money managers, auditors, compliance professionals, financial and bank officers, accountants and regulators.
Students will be able to:
  • Describe how interest accrues on forward rate agreements.
  • Identify key factors necessary to hedge with an FRA.
  • Identify the uses of FRAs in speculating.
  • Describe the forward curve and how it is constructed.
Derivative Instruments or equivalent level of knowledge
  • Short Term Interest Rate Futures - Online
  • Note and Bond Futures - Online
  • Stock Index Futures- Online
  • Risks of Forwards and Futures - Online
  • Swaps - Online
    • Forward Rate Agreements (FRAs)
    Topics covered include:
    • Defining an forward rate agreement
    • Hedging with forward rate agreements
    • Speculating with forward rate agreements
    • How forward rate agreements are priced
    • How the forward curve is constructed
    Duration: 1 hour

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