CFAI Reading #38, Page 144, Example 1

CFA Level III
#1

For those who have gone through the SWAP, CFAI Reading #38, Page 144, Example 1, how is the forward exchange rate calculated? Thanks.

#2

Details for those of us without the book? But the answer is surely using interest rate parity.

#3

Dude, just in case you didn’t notice… that entire section is an optional reading (not tested).

#4

McLeod81, in all seriousness, how did you know that this is an optional reading?

#5

There are long bars down the side of each page with a small icon which says “optional segment” and has a book with a ( \ ) through it. Not to say that you can’t read the section for background knowledge, but I’m not going to. That section is all review from L2.

#6

Good catch, thanks a lot.

#7

WTF is optional reading anyway? www.amazon.com contains lots of optional reading. Is there some CFAI restricted reading that I don’t know about? (since I would surely buy it).

#8

JoeyDVivre Wrote: ------------------------------------------------------- > WTF is optional reading anyway? www.amazon.com > contains lots of optional reading. Is there some > CFAI restricted reading that I don’t know about? > (since I would surely buy it). It’s reading that included in the curriculum (those element books) but will not be tested on the exam. I found that they tend to be fundamentals with the actual material being tested built further from these concepts.

#9

restricted readings include anything that challenges the notion of efficient frontiers or stationary correlations. I think the Harry Potter series is on the black list also