Derivatives for CFA Level 1
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Derivatives for CFA Level 1

This course builds the conceptual framework for understanding the basicderivatives
3.3 (2 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
73 students enrolled
Created by Tanuja Yadav
Last updated 4/2016
English
Current price: $10 Original price: $20 Discount: 50% off
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Includes:
  • 2 hours on-demand video
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Get an understanding of Derivatives
  • Learn about various derivative instruments
  • Understand the correct approach to answering questions
View Curriculum
Requirements
  • No prior knowledge of Derivatives instruments required
Description

This series of structured videos builds the conceptual framework for understanding the basic derivatives (forwards, futures, options, and swaps), derivative markets, and the use of options in risk management.

Derivatives—financial instruments that derive their value from the value of some underlying asset—have become increasingly important and fundamental in effectively managing financial risk and creating synthetic exposures to asset classes. As in other security markets, arbitrage and market efficiency play a critical role in establishing prices.

This course includes video lectures for 3 readings from the CFA L1 course - Derivative Markets and Instruments, Basics of Derivative Pricing and Valuation, Risk Management Applications of Option Strategies which cover the study session 17.

The course is structured in 12 short videos of each topic spanning approx 2 hours in total and at the end of each topic concept checkers are provided that reiterate the understanding of the topic as well as provide a step by step guide to question solving techniques on the CFA exam.

The course will help the students to complete the preparation in one third of the time it usually takes to study Derivatives via the self study approach.

Who is the target audience?
  • CFA L1 candidates or students intending to enroll for CFA Level 1 Exam
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Curriculum For This Course
13 Lectures
01:50:52
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Understanding Derivative Instruments
10 Lectures 01:31:19

This lecture gives an introduction to the studyware and acts as a roadmap to what will be discussed in the successive lectures.

Preview 01:49

At the end of this lecture you will be able to:

  • define forward contracts, futures contracts, options (calls and puts), swaps, and credit derivatives and compare their basic characteristics;
  • describe purposes of, and controversies related to, derivative markets;
  • explain arbitrage and the role it plays in determining prices and promoting market efficiency.
Preview 10:50

This lecture will discuss Forward contracts in detail.

Forward Contract
10:09

This reading gives in-depth understanding on Futures Contracts

Futures Contracts
14:19

At the end of this lecture you will be able to:

  1. explain how the value of a European option is determined at expiration;
  2. explain the exercise value, time value, and moneyness of an option;
  3. identify the factors that determine the value of an option and explain how each factor affects the value of an option;
  4. explain put–call parity for European options;
  5. explain put–call–forward parity for European options; n explain how the value of an option is determined using a one-period binomial model;
Options_ Part 1_Type of Options
10:34

This lecture discussed explains under which circumstances the values of European and American options differ.

Option_Part 2_European and American options
04:17

At the end of this lecture, the student will be able to:

  1. explain how the value of a European option is determined at expiration;
  2. explain the exercise value, time value, and moneyness of an option;
  3. identify the factors that determine the value of an option and explain how each factor affects the value of an option;
Principles of Option Pricing Part 1
12:50

At the end of this lecture, the student will be able to:

  1. explain put–call parity for European options;
  2. explain put–call–forward parity for European options;
Principles of Option Pricing Part 2
08:45

At the end of this lecture, the student will be able to explain how the value of an option is determined using a one-period binomial model;

Principles of Option Pricing Part 3
09:49

explain how swap contracts are similar to but different from a series of forward contracts;

distinguish between the value and price of swaps;

Swaps
07:57
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RISK MANAGEMENT APPLICATIONS OF OPTION STRATEGIES
3 Lectures 19:33

The candidate should be able to:

determine the value at expiration, the profit, maximum profit, maximum loss, breakeven underlying price at expiration, and payoff graph of the strategies of buying and selling calls and puts and determine the potential outcomes for investors using these strategies;

Risk Management Part 1
10:04

The candidate should be able to:

determine the value at expiration, profit, maximum profit, maximum loss, breakeven underlying price at expiration, and payoff graph of a covered call strategy and a protective put strategy, and explain the risk management application of each strategy.

Risk Management part 2
08:49

Try and answer these questions with 90% accuracy in less than 15 minutes

Practice Quiz 1
10 questions

Acknowledgements: Institute, CFA CFA Institute Level I 2014 Volume 6 Derivatives and Alternative Investments.

Practice Quiz 2
10 questions

Bonus Lecture: Coupon codes and Access to free courses
00:40
About the Instructor
Tanuja Yadav
3.9 Average rating
373 Reviews
11,728 Students
17 Courses
Chartered Financial Analyst

A CFA charter holder, I have extensive experience in the field of F&A outsourcing and have worked on various projects within the F&A Arena. I have 11 years of experience in F&A delivery, handling end to end finance and accounting processes, F&A practice and process improvement. I am also a visiting faculty with International College of Financial Planning, New Delhi where I have taken classes for CFA L 2 and 3. I have my own channel on Youtube on Finance and Investments.

Specialties: Finance, Fixed Income, Treasury, Accounts Payable, Accounts Receivables, Reconciliation, Fixed Asset and Project accounting, Solution development, F&A Training, SOX testing, Fraud risk assessment and Process streamlining.