• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

leveraged swap and leveraged FRA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › leveraged swap and leveraged FRA

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 22, 2014 at 5:09 pm #205422
    jess
    Member
    • Topics: 36
    • Replies: 19
    • ☆☆

    1)what are the meaning of leveraged swap and leveraged FRA?

    2008 dec Q5b
    leveraged swap and fra can be taken to avoid upfront cost of Interest rate option.For eg, taking multiple of the variable leg of a swap where a higher than market fixed rate is swapped for n multiple of variable rate.

    2)what does this paragraph mean? can u please explain?

    October 22, 2014 at 7:43 pm #205464
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54720
    • ☆☆☆☆☆

    Usually, a swap or an FRA is done on the actual amount of the loan in question.

    All that leveraged means is that instead of doing it on the actual amount, then we do it on a greater amount.

    (I really would not worry too much about this question – it was set by the previous examiner and the reason that he is no longer the examiner is because of questions like this. The new examiner took over in 2010 and it is better to concentrate on his questions 🙂 )

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • Rashi@gupta on FA Chapter 4 Questions Accruals and Prepayments
  • natashad25 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in