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You have just made the concepts of exchange rates very easy to understand from the lesson 1 video, thank you very much Sir.

DOUBT: for 15:00, why wouldn't A be a better option for Q2 of example 6. Euro could be expected to depreciate for a variety of reasons that may not be part of the example (impending doom). Where maybe even the low interest rate may not be able to negate that effect. Ergo, A is a safer option (stays true in more situations than C)

for the very last example with 270-day LIBOR rates: I'm getting 0.84852 (you're showing 0.84862) for the forward rate when making that calculation - should it be 0.84852? ( credit to Ted Andersson in comment section) Therefore, the forward point should be -4 instead of -2.8. Hope IFT team will clarify on this. Thank you IFT Team.

You're working is incongruent between the first and second slides. Second slide has 15 bips, whereas first slide refers to -26.5 pips

In the last example, LIBOR rates are given for 270 days, so why are we multiplying the rates by 270/360? multiplying means that we are considering the rates for 360 days

5:45 your formula is different from the formula given by Curriculum F f/d = S f/d (1 + if) / (1 + id) so F b/p = S b/p (1 + ib) / (1 + ip) Instead of F p/b = Sp/b (1 + ip) / (1 + ib) correct me if I'm wrong. Thanks IFT!

Thank you so much for helping people

15:04 You gave the correct answer as C. Does that mean that A is wrong, or A is also right but not the best interpretation? I am asking this because as far as I am concerned the minus sign forward rate means that the base currency depreciated as it will be able to buy less price currency.

In the french company example is the GBP/EUR value is decreasing, shouldn't that mean the company can buy lesser amount of GBP with 1 euro ? If so, then why is the company selling GBP , shouldn't they be buying it ?

Very insightful and crisp

you are amazing!

this is amazing! thanks for the explanation. I love it :)

@15:42 shouldn’t the quoted 12 month forward rate be quoted as 4 decimals after the comma? which gives us the reason to multiply by 10 000 later

So can we say: 1. To convert forward points to forward rate: FP/10,000÷SR X 100. 2. To find forward rate: SR - FP/10,0000. 3. To find forward points: FR - SR X10,000. ?

5:20, if decimal is -0.15, isnt basis point (-15*10,000)=-1500 and decimal(-0.15*100)= -15%

What is the EUR amount that french company receives in that case? ( assuming company receives 1000 GBP) is it 1000/0.87506= 1142.77?

We have taken 360 days to de-annualise the interest rate but in one year there are 365 days then why not 365 and why 360?

for the very last example with 270-day LIBOR rates: I'm getting 0.84852 (you're showing 0.84862) for the forward rate when making that calculation - should it be 0.84852?

At 5.20 why are you saying if we convert points to 4 decimal divided by 10,000 but divided by 100 for 2 decimal place ? Doesn't make sense to me. Thank you Sir

13:48 forward rate is wrong?