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Michael McDonald, President
Michael is an associate with TRI Corporation, a training firm focused on cross functional and financial training doing work for Fortune 500 firms and holds a PhD in finance from the University of Tennessee.
This instructor has 32 courses »To Access This Course:
Derivatives feature prominently on the CFA exam and that is the focus of this course. We will cover derivatives with a primary focus on options, but also including forwards and futures. Derivatives are harder to price than other investments, so in addition to talking about the characteristics of call options and put options, we will also go over how they are priced including the Black Scholes formula and the inputs to it.
Learning Objectives
- Discover a derivative and distinguish between exchange-traded and over-the-counter derivatives.
- Explore how the concepts of arbitrage, replication, and risk neutrality are used in pricing derivatives.
- Identify the factors that determine the value of an option and explain how each factor affects the value of an option.
- Explore how the value and price of a forward contract are determined at expiration, during the life of the contract, and at initiation.
- Identify high level strategies for dealing with derivatives questions on the CFA.
Last updated/reviewed: May 17, 2022
Included In Certifications
This course is included in the following Certification Programs:
11 CoursesCFA Level 1 Preparation
- CFA Level 1 Prep: Introduction to the CFA Exam
- CFA Level 1 Prep: 1 - Ethics and Professional Standards
- CFA Level 1 Prep: 2 - Quantitative Methods
- CFA Level 1 Prep: 3 - Economics
- CFA Level 1 Prep: 4 - Financial Reporting and Analysis
- CFA Level 1 Prep: 5 - Corporate Finance
- CFA Level 1 Prep: 6 - Equities Markets
- CFA Level 1 Prep: 7 - Fixed Income
- CFA Level 1 Prep: 8 - Derivatives
- CFA Level 1 Prep: 9 - Alternative Investments
- CFA Level 1 Prep: 10 - Portfolio Management
2 Reviews (6 ratings)Reviews
Xun Zhang
(CPA at Xun Zhang CPA)
I learned from this course the terminology and many basic concepts about derivatives (options and futures), including intrinsic and time value, long and short, call and put, option valuations, forward contracts and future contracts.
Eugene Rura
(Manager Finance at Saputo DF USA)
Very clear and concise overview of the derivatives with the right amount of practical review and mathematical explanations
Prerequisites
Course Complexity: Advanced
No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .