ok, 2008 errata, 35a is optional, we can forget about it and all the prepaid swaps commodity calculations (good) 35b… what is this? looking at schweser, seems we only need to know that mkt value of the swap (which will determine who has credit risk a that time and how much) will depend on the underlying, fwds, and interest rates… And, apparently, to remove the non-credit risk you should use an interest rate derivative (interest rate swaps)… that´s all? one single reading just to say this? am I missing something? thx a lot

Just do the CFAI practice problems after you read Schweser and get ready to cry…

well… calculations are not very difficult, come on… just get some equal swap price so that pv of same payment every period = pv of current fwd prices every period and once it is fixed, then you play with them and interest rates moving up or down what I don´t see is what do those calculations have to do with the wording of the LOS: “evaluate hedging strategies that rely on swaps and illustrate their inherent risk exposures” ??? and not just the calculations, actually if you look at cfa text, you only have 2-3 pages at the begining + 1-2 at the end (the others are all optional)… But, again, nothing there seems to be related to “evaluate hedging strategies that rely on swaps and illustrate their inherent risk exposures”