2020 FRM SchweserNotes Part 1 Book 3 Financial Markets and Products

Contents Reading 25 Banks Exam Focus Module 25.1: Banks Key Concepts Answer Key for Module Quizzes Reading 26 Insurance Companies and Pension Plans Exam Focus Module 26.1: Insurance Companies and Pension Plans Key Concepts Answer Key for Module Quizzes Reading 27 Fund Management Exam Focus Module 27.1: Mutual Funds and Exchange-Traded Funds Module 27.2: Hedge Funds Key Concepts Answer Key for Module Quizzes Reading 28 Introduction to Derivatives Exam Focus Module 28.1: Derivatives Markets and Securities Module 28.2: Derivatives Traders Key Concepts Answer Key for Module Quizzes Reading 29 Exchanges and OTC Markets Exam Focus Module 29.1: Exchange-Traded Derivatives Module 29.2: Over-the-Counter Derivatives Key Concepts Answer Key for Module Quizzes Reading 30 Central Clearing Exam Focus Module 30.1: Principles of Central Clearing Module 30.2: Risks Faced by Central Counterparties Key Concepts Answer Key for Module Quizzes Reading 31 Futures Markets Exam Focus Module 31.1: Futures Characteristics Module 31.2: Futures Markets Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 32 Using Futures for Hedging Exam Focus Module 32.1: Principles of Hedging Module 32.2: Hedging With Stock Index Futures Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 33 Foreign Exchange Markets Exam Focus Module 33.1: Foreign Exchange Quotes and Risks Module 33.2: Interest Rates, Inflation, and Exchange Rates Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 34 Pricing Financial Forwards and Futures Exam Focus Module 34.1: Forward and Futures Prices Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 35 Commodity Forwards and Futures Exam Focus Module 35.1: Fundamentals of Commodities Module 35.2: Pricing Commodity Forwards Key Concepts Answer Key for Module Quizzes Reading 36 Options Markets Exam Focus Module 36.1: Option Types, Positions, and Underlying Assets Module 36.2: Option Specification and Trading Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 37 Properties of Options Exam Focus Module 37.1: Option Pricing Factors Module 37.2: Upper and Lower Option Pricing Bounds Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 38 Trading Strategies Exam Focus Module 38.1: Protective Puts, Covered Calls, and Principal Protected Notes Module 38.2: Option Spread Strategies Module 38.3: Option Combination Strategies Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 39 Exotic Options Exam Focus Module 39.1: Exotic Option Development Module 39.2: Types of Exotic Options Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 40 Properties of Interest Rates Exam Focus Module 40.1: Types of Interest Rates Module 40.2: Spot Rates, Forward Rates, and Forward Rate Agreements Module 40.3: Duration and Convexity Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 41 Corporate Bonds Exam Focus Module 41.1: Corporate Bond Fundamentals and Types Module 41.2: Credit Risk, Event Risk, and High-Yield Bonds Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 42 Mortgages and Mortgage-Backed Securities Exam Focus Module 42.1: Mortgage Loans Module 42.2: Mortgage-Backed Securities Module 42.3: Prepayment Modeling Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 43 Interest Rate Futures Exam Focus Module 43.1: Day Count Conventions and Quotations Module 43.2: Treasury Bond and Eurodollar Futures Module 43.3: Duration-Based Hedging Key Concepts ANSWER KEY FOR MODULE QUIZZES Reading 44 Swaps Exam Focus Module 44.1: Mechanics of Interest Rate Swaps Module 44.2: Valuation of Interest Rate Swaps Module 44.3: Other Types of Swaps Key Concepts ANSWER KEY FOR MODULE QUIZZES Index