11.1 Learning Outcomes:
Compare and contrast a derivative on an interest rate and a derivative on an asset.
Discuss the pricing, valuation, and use of forward rate agreements (FRAs), interest rate options, swaptions, and forward swaps.
11.2 Action Required:
Watch the short video in the following link:
11.3 Test your Knowledge (Question):
Q. Explain how FRAs are like swaps and how they are different.
your answer needs not to exceed 100 words.