What does FRA mean?

[lee_onion]

I found it in some threads but not on the syllabus, I want to know if it will be tested...or someone may give me a definition?

Thanks very much!

[Actiger]

Forward Rate Agreement, which is not on the syllabus anymore.

[lee_onion]

Originally Posted by Actiger

Forward Rate Agreement, which is not on the syllabus anymore.

Thanks a lot! I can focus on other topics~~

[Nimue]

Originally Posted by Actiger

Forward Rate Agreement, which is not on the syllabus anymore.

Are you serious? urgh. I spent so much time on those problems today. This is what I get for using an older manual...

[vagarach]

Just read AO and you find out about all these things double quick. I'm also using the old 2nd edition of the ASM manual.

[Nimue]

Originally Posted by vagarach

Just read AO and you find out about all these things double quick. I'm also using the old 2nd edition of the ASM manual.

I'm not so sure about that. Would the extra time I would be spending on the AO in order to be on top of these things wind up being less time than the time I wasted studying stuff not on the exam?

[Actiger]

I am very serious

You should keep up with the SOA updates and the syllabus changes. Manual can't tell you everything.

Here are a couple of things you should be aware before walking in to the exam room:

Unless otherwise stated in the question, assume:
• The market is frictionless. There are no taxes, transaction costs, bid/ask spreads,
or restrictions on short sales. All securities are perfectly divisible. Trading does
not affect prices. Information is available to all investors simultaneously. Every
investor acts rationally (i.e. there is no arbitrage).
• The risk-free interest rate is constant.
• The notation is the same as used in Derivatives Markets, by Robert L. McDonald.
When using the normal distribution, choose the nearest z-value to find the probability, or
if the probability is given, choose the nearest z-value. No interpolation should be used.

[Nimue]

Originally Posted by Actiger

I am very serious

You should keep up with the SOA updates and the syllabus changes. Manual can't tell you everything.

Here are a couple of things you should be aware before walking in to the exam room:

Unless otherwise stated in the question, assume:
• The market is frictionless. There are no taxes, transaction costs, bid/ask spreads,
or restrictions on short sales. All securities are perfectly divisible. Trading does
not affect prices. Information is available to all investors simultaneously. Every
investor acts rationally (i.e. there is no arbitrage).
• The risk-free interest rate is constant.
• The notation is the same as used in Derivatives Markets, by Robert L. McDonald.
When using the normal distribution, choose the nearest z-value to find the probability, or
if the probability is given, choose the nearest z-value. No interpolation should be used.

Thanks- I appreciate the consideration. But this is all in the study note. I did know that perputual options weren't on the syllabus anymore, I just wasn't aware of any further changes. Anyway I'm glad- although I spent time studying FRA I'm still not 100% confident about it so this is one less thing to worry about.

[Hawkeye16]

BAH! I like Perpetual options and FRA! Those are some of my strong points I should look at the syllabus... although it may be too late now.