About this document
Daily Marking of Forward Contracts by jkpanayotov is a document available to read on EtoBox.
The document discusses forward and futures contracts, explaining the mechanics of spot markets and outright purchases. It defines forward contracts as agreements to exchange assets at a future date for a predetermined price, emphasizing their zero-sum nature and the concept of no arbitrage in pricing. Additionally, it provides examples of using forward contracts for hedging and creating synthetic zero-coupon bonds, along with calculations for expected returns and the value of forward contracts.
- Author
- jkpanayotov
- Language
- EN