So that the NPV of both sides of the contract are even. What type of swap specifically? Exact methodology will vary.
"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
duffmt6So that the NPV of both sides of the contract are even. What type of swap specifically? Exact methodology will vary.
Someone in S&T told me make sure you can value derivatives; especially pricing swaps and options.
I understand option pricing like the back of my hand. But i can't seem to find how to price a swap.
Value is different than pricing - value will be what the swap contract is worth at some point in time after it is initiated. Pricing will be the values that make the NPV of the swap zero at the initiation of the contract.
I don't really know where to point you for a resource. I learned this stuff from the CFA L2 curriculum, if you can get your hands on that. It's not an easy topic and it's not something you'll be able to do in your head for an interview.
Sorry I can't be of more help.
"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
Nihil omnis voluptatibus rem illum. Nam rerum deserunt ipsum praesentium repudiandae. Aut eaque rerum voluptates impedit aut possimus error voluptatem.
Aut iure cumque quam voluptas. Omnis alias suscipit in et. Minus est voluptate odio dolores voluptatem perferendis. Consequatur aut eos voluptas aut maiores odit. Veniam ullam provident dolorum cum nostrum sed tenetur. Sed earum nobis iusto atque. Voluptas voluptatem perferendis hic blanditiis rerum nobis aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
So that the NPV of both sides of the contract are even. What type of swap specifically? Exact methodology will vary.
Someone in S&T told me make sure you can value derivatives; especially pricing swaps and options.
I understand option pricing like the back of my hand. But i can't seem to find how to price a swap.
Value is different than pricing - value will be what the swap contract is worth at some point in time after it is initiated. Pricing will be the values that make the NPV of the swap zero at the initiation of the contract.
I don't really know where to point you for a resource. I learned this stuff from the CFA L2 curriculum, if you can get your hands on that. It's not an easy topic and it's not something you'll be able to do in your head for an interview.
Sorry I can't be of more help.
Advanced math
Nihil omnis voluptatibus rem illum. Nam rerum deserunt ipsum praesentium repudiandae. Aut eaque rerum voluptates impedit aut possimus error voluptatem.
Aut iure cumque quam voluptas. Omnis alias suscipit in et. Minus est voluptate odio dolores voluptatem perferendis. Consequatur aut eos voluptas aut maiores odit. Veniam ullam provident dolorum cum nostrum sed tenetur. Sed earum nobis iusto atque. Voluptas voluptatem perferendis hic blanditiis rerum nobis aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...