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GUIDE (version 1.2.7)

fra: Calculate the forward rate.

Description

Function to Calculate the forward rate.

Usage

fra()

Arguments

Value

The forward rate of interest.

Details

The user inputs are as follows: Months1: number of months for the loan period to begin- enter 3 for 3 months Rate1: enter in decimals. For e.g. 5 Months2: number of months for the loan period to end- enter 6 for 6 months Rate2: enter in decimals. For e.g. 8 Frequency of spot rates: chosen between Continuous and Loan period

References

John C. Hull, "Options, Futures, and Other Derivatives", 8/E, Prentice Hall, 2012.

See Also

forwardcurrency,forwardcommodity