Hi everyone,
I am having some trouble with understanding reading 16: swaps, forwards and futures strategies. This is mainly because of the lack of standardized formulas to calculate swaps forwards and futures. I would like to make a summary of formulas for this chapter.
Can anybody help me out with the formulas to compute:
-the net cash flow an interest rate swap
-the net cost of an FRA
-the total return of STIR futures
-the principal flows and interest payments of currency swaps
-the net cash flow on an equity swap
-the profit/loss of equity swaps
Are there any formulas available that can be applied to these case problems? Formulas usually help me to understand the mechanics of a problem.