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- This topic has 8 replies, 3 voices, and was last updated 9 years ago by John Moffat.
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- May 12, 2015 at 9:05 am #245420
HI John
I have question about SWAP. in the revision notes, we normally do like this Fixed Floating
X 5% LIBOR (X wants the floating rate and Y wants fixed rate)
Y 6% LIBOR + ½%
during the swap process, X Y
L+0.5% 5%
However, during the JUNE 14 Q1 recording, you also mentioned that this method would be differently. in that question, when we do SWAP, we also use this example to illustrate.
x Y
5% L+0.5%.
SO in what situations can we use this method(method in the JUNE14)? and which one is correct? if both are correct, I could use both method for any SWAP questions? thanks so much?May 12, 2015 at 10:30 am #245457Both are correct and you can use either.
May 12, 2015 at 10:33 am #245460Ok. I see thanks.
May 12, 2015 at 12:23 pm #245471You are welcome 🙂
May 12, 2015 at 12:35 pm #245476Sir John, please is Forex modified BSPM still examinable?
May 12, 2015 at 12:38 pm #245478No – it was removed from the syllabus 3 or 4 years ago (which is why the formula no longer appears on the formula sheet).
May 12, 2015 at 12:38 pm #245479No – it was removed from the syllabus 3 or 4 years ago (which is why the formula no longer appears on the formula sheet).
May 12, 2015 at 12:41 pm #245486Thank u sir
May 12, 2015 at 3:31 pm #245512You are welcome 🙂
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