Derivatives for CFA Level 1

This course builds the conceptual framework for understanding the basicderivatives
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Instructed by Tanuja Yadav Test Prep / Other
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  • Lectures 13
  • Length 2 hours
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
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About This Course

Published 9/2015 English

Course 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.

What are the requirements?

  • No prior knowledge of Derivatives instruments required

What am I going to get from this course?

  • Get an understanding of Derivatives
  • Learn about various derivative instruments
  • Understand the correct approach to answering questions

What is the target audience?

  • CFA L1 candidates or students intending to enroll for CFA Level 1 Exam

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Understanding Derivative Instruments
01:49

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

10:50

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.
10:09

This lecture will discuss Forward contracts in detail.

14:19

This reading gives in-depth understanding on Futures Contracts

10:34

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;
04:17

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

12:50

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;
08:45

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;
09:49

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;

07:57

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

distinguish between the value and price of swaps;

Section 2: RISK MANAGEMENT APPLICATIONS OF OPTION STRATEGIES
10:04

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;

08:49

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.

10 questions

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

10 questions

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

Bonus Lecture: Coupon codes and Access to free courses
00:40

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Instructor Biography

Tanuja Yadav, 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.

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