pricing valuation and forward commitments

When you calculate value for forward, do you multiply or comound

compound

When you calculate value for future, do you multiple or compound

multiple

if the underlying pays dividend in two months, how do you calculate

subtract the benefit(dividend) from spot price but remember to take the FV of the dividend when calculating forward value

If it says a forward is worth a 100, does it worth a 100 at time 0 or at the end of the contract period

at the end of the contract period

how many period or interst rate risk does FRA and interest rate swap hedges

An interest rate swap is like an FRA except that it hedges multiperiod interest-rate risk, whereas an FRA only hedges single-period interest-rate risk.

what are being swapped in a currency swap

A currency swap is a contract in which two counterparties agree to exchange future interest payments in different currencies

simplest way to explain the value of a currency swap

he value of a bond in currency a (V_a) less the value of a bond in currency b (V_b), expressed in terms of currency a, as follows:

fixed rate on an equity swap relation with comparable interest rate swap.

fixed rate on an equity swap is simply the fixed rate on a comparable interest rate swap.

when calculating value of contract, what is the last step

bring the value back to PV, you keep forgetting

for equity floating payer,  Spot was $100, now is $103, how much do they pay

they pay (103/100)* notional amount