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Updated in [July 20th, 2023]
This Level I CFA Prep Course (2023) provides an introduction to derivatives in the markets. Participants will learn about forwards, futures, swaps, options and credit derivatives, and discuss the benefits and shortcomings of each. Additionally, the course will cover the difference between pricing and valuation for derivatives, as well as the concepts in pricing and valuation of forwards, futures, swaps, and options.
Course Syllabus
Derivative Instrument and Derivative Market Features
Forward Commitment and Contingent Claim Features and Instruments
Derivative Benefits, Risks, and Issuer and Investor Uses
Arbitrage, Replication, and the Cost of Carry in Pricing Derivatives
Test Your Understanding
Pricing and Valuation of Forward Contracts
Pricing and Valuation of Futures Contracts
Pricing and Valuation of Swaps
Test Your Understanding
Pricing and Valuation of Options
Option Replication Using Put–Call Parity
Valuing a Derivative Using a One-Period Binomial Model
Test Your Understanding