Time is a crucial resource that each business treasures and tries to turn into a advantage. When selecting document management software program, focus on a clutterless and user-friendly interface that empowers consumers. DocHub delivers cutting-edge tools to optimize your document managing and transforms your PDF file editing into a matter of one click. Remove Checkmark into the Hedging Agreement with DocHub to save a ton of time as well as boost your productiveness.
Make PDF file editing an simple and easy intuitive operation that saves you plenty of precious time. Easily alter your files and deliver them for signing without the need of adopting third-party solutions. Give attention to relevant duties and improve your document managing with DocHub right now.
in this video we are going to work through three examples where were going to hedge fras using euro dollar futures contracts so were going to see the relationship between fras and the euro dollar futures contract for our first example were going to look at the following fra so weve got a million dollar notional weve agreed a rate of 3.29 percent the 90-day loan from counterparty a to counterparty b it starts on the 18th of march 2020 on a euro dollar deposit rate were in dollars so thats going to be an actual over 360 rate so weve got two counterparties a and b and a starts by lending money a million dollars on the 18th of march 2020 to counterparty b b returns that million dollars plus interest and we can check that interest calculation that should be 0.1 million times 0.0329 times 90 over 360. so thats 825 dollars in interest now we can value this fra assuming today is the 5th of october 2018 the days until the start date is 530 and the days until the end date is 530 plus 90