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Basic Derivatives: Forwards, IR Swaps, FX

 
 
  1. How to calculate the value of a forward contract in EXCEL
    1.  
      Calculate the value of forward contracts with no income, known cash income & known dividend yield respectively, for continuous and discrete risk-free rate compounding.
       
  1. How to price Interest Rate Swaps – LIBOR discounting vs OIS discounting
    1.  
      The difference between using LIBOR vs OIS to MTM interest rate swaps in OIS swap pricing models.
       
  1. How to calculate Spot Rates, Forward Rates & YTM in EXCEL
    1.  
      A calculation reference to determine Spot Rates & Forward Rates and YTM using both Trial & error method and EXCEL’s Goal Seek functionality.
       
  1. How to calculate the values of Forward Rate Agreements & Forward Foreign Exchange Rates in EXCEL
    1.  
      Presents formulas for determining values of FRAs & Forward FX contracts with interest rates compounded on continuous & discrete basis.
  1. Bootstrapping the Zero Curve & Forward Rates A walk-through of the process of building a zero curve bootstrapping model in EXCEL.
  1. How to Build a Black Derman Toy Model in EXCEL A step-by-step methodology for building a one-factor Black Derman Toy model in EXCEL.
  1. How to estimate the parameters of a CIR interest rate model and calibrate them to observable market interest rates? A practical example of how CIR parameters may be calibrated and on how these resulting parameters may be used to simulate short-term interest rates and model longer-term rates.
  1. How to calculate Duration and Convexity for specific US Treasuries A walk-through of how to calculate Macaulay, Modified and Effective Duration as well as Convexity for the selected Treasury issues.