Level 2: Forwards and futures
How a forward price is set so that no one can make a riskless profit, what a forward is worth later, currencies and short sales, and how futures gains and losses are paid each day.
- The forward price of a share
- The forward price with dividends
- The value of a forward contract
- Currency forwards and interest rate parity
- The cost of carry: storage costs and yields
- Convenience yield, contango and backwardation
- Arbitrage with a mispriced forward
- Short selling
- Daily settlement of futures
- When a margin call comes
- Mixed practice: all ten skills