Prepaid Variable Forward vs. Forward Conversion with Options

[dan5342]

Is there any difference between the two? The way I am reading it they appear to be the same thing.

 

[myriam2222]

Hi Dan,
Where is it in the curriculum?

 

[dan5342]

Both are in Volume 2 of the CFAI curriculum.
Prepaid Variable Forward: p. 330
Forward Conversion with Options: p. 345

 

[myriam2222]

I think the difference is the loan.
In a prepaid variable forward you get a ” prepayment of the forward” so to say because you get a loan.
The forward conversion with option puts the investor in a good position to obtain a loan. But the loan as such is not included in what we call the forward conversion with option
That’s how i understand it