Valuing FRAs

Recall that an FRA is essentially an agreement to enter into two loans (one long, one short) in the future: a fixed-rate loan and a floating-rate loan.ย  (The difference between an FRA and an actual agreement to enter into these two loans is that the FRA will be settled at the beginning of the loan […]

To access this post, you must purchase CFAยฎ Level II Membership.