SWAPS, FRA, PUT CALL PARITY

[archived_user]

Please can explain replication of SWAPs, FRA, Put call parity and put call parity forward?
I have spent lots of time reading these concepts with zero understanding.
I need someone to break it down for me to its simplest term

 

[archived_user]

Swaps = exchanging cash flows
FRA (forward rate agreement), a type of SWAP, that is a single period, exchanging fixed rates for floating rates
Put-Call Parity
Protective put = Put + underlying asset
fiduciary call = Call + bond
fiduciary call = protective put
Put-call forward parity
same thing as above, except forwarding contract instead of an underlying asset
if positive = long
if negative = short
if isolating for call = synthetic call
if isolating for put = synthetic put
These only hold when there are no arbitrage opportunities

 

[archived_user]

Droplets wrote:
Swaps = exchanging cash flows
FRA (forward rate agreement), a type of SWAP, that is a single period, exchanging fixed rates for floating rates

FRA is not a type of swap, but an interest rate swap and a FRA are equivalent. A FRA is settled in advance while a swap is settled in arrears.